Sony Tax Charge Results In Record Loss For Latest Fiscal Year
The company’s U.S. shares are down nearly 8% in pre-market trading after it said that it lost about $6.4B in the fiscal year that ended in March — up from the $2.7B loss it projected in February. The difference is due to a $3.7B tax charge which Sony says is “primarily due to the establishment of valuation allowances against certain deferred tax assets, predominantly in the U.S.” Sony’s new CEO Kazuo Hirai told analysts that “while the Pictures and Music businesses based in the U.S. have a stable business foundation and are strong from a profitability perspective, Sony’s electronics business in the U.S. is not as profitable.” Today’s report offers some hope for investors who are counting on Hirai to turn around the struggling consumer electronics and entertainment giant: The company says it expects to end its four year losing streak and “return to positive operating results” for the fiscal year that just began, with consolidated income projected to hit $2.2B. Hirai will discuss his strategic plans on Thursday. Sony will release its full results for the year that ended in March on May 10.
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