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| Tuesday, October 17, 2006 |
Troubled Sony said Tuesday it may lower its annual earnings forecast at a time when the Japanese electronics and entertainment company has been hit with extra costs for a massive battery recall.
Tokyo-based Sony Corp. has also slashed the price in Japan for the PlayStation 3, even before it arrives in stores. The game console is set to go on sale here and in the U.S. in November.
Sony said in a statement it's looking into various factors to possibly lower its earnings projection. It said a decision has not yet been made, but it will disclose any revision quickly.
The battery and PlayStation woes are the latest troubles battering Sony. The company has been tackling a turnaround after getting beaten by rivals on key consumer electronics products such as digital music players and flat-panel TVs.
Sony previously said it expects operating profit of 130 billion yen ($1 billion) for the fiscal year ending March 2007, down 43 percent from the previous fiscal year. It expects net profit at the same level, 130 billion yen, which would be up 5 percent from fiscal 2005.
Nihon Keizai Shimbun, Japan's top business daily, reported Tuesday the Sony board will meet soon to make a decision on a forecast revision. Sony declined comment on the report.
Nearly 8 million Sony lithium-ion batteries were recalled in recent weeks by practically every major laptop maker in the world, including Dell Inc. and Apple Computer Inc.
Sony initially said the battery recalls will cost the company between 20 billion yen ($168 million) and 30 billion yen ($252 million).
That cost may rise as more companies have recalled laptop batteries, including Japanese makers. Sony said it will probably include its own Vaio laptops in the recall.
Japanese laptop-makers, including Toshiba Corp. and Hitachi Ltd., said earlier this week they may demand compensation from Sony. |
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