Sony to stay in red after posting huge loss

Japan’s hi-tech giant posted woeful bottom-line results for the last quarter of the current fiscal year. Moreover, the company’s analysts are predicting an unfavorable scenario. According to their flash estimates, the company might incur losses of ¥50 billion (or $490 million). Importantly, independent auditors also have the same figure, but on the plus side. So, they reckon Sony’s profit to rise by ¥51.7 billion. However, in case the negative outlook comes true, a run of bad luck could extend in the current fiscal year until March 2015, thus making it the sixth straight year of steady losses. It should be reminded that Sony posted a full-year net loss of 128.37 billion yen ($1.26 billion). The operating revenue is expected at ¥140 million in 2014 compared to ¥26.5 billion a year earlier when the total revenue was ¥7.8 trillion. Meanwhile, experts hope to raise the total revenue of ¥231.8 billion on average in 2014. In a nutshell, the current state of affairs reflects a sharp sales slump and increasing costs of painful restructuring. The struggling electronics giant reconsidered its annual assessment of net losses making it higher. So, it cancelled its previous profit outlook as a result of the red ink facility for DVD devices production caused by a weak demand in Europe. At the same time, steady money-making sales of PlayStation 4 are the only robust division in the corporation performance. However, the console development costs will be offset and will start making a profit in a year, at least.