bigtroyjon said:
They have an even amount of expenses/revenue when it comes to the dollar so the USD falling doesn't harm their profits. Euro hurts but the biggest reason for the loss was the restructuring of the tv division.
Both of those add up to $351 million and they lost $350 million. TV's are their biggest issue by far.
huh?
sony clearly states that they revised their FY2011 forecast from JULY numbers due to Yen appreciation which impacted it (since July 2011) by 832 million USD. Thats only from July.
Then next one is 320 million usd loss due to impact of floods in Thailand (damages to factories, loss of production, etc).
Thats only in Q2 revised.
In Q1, they showed how yen appreciation over Q1 2010 has cost them 1,2 billion USD.
So far in 1H 2011, they lost $2 billion on Yen appreciation and 320 million on thai floods.
Which means they would have made more than $1.1 billion for 2011 if not for high yen and floods.
And thats only compared to 2010 when yen was 92 (77 now)... back in 2007, yen was at 126 which was really favourable for exports and they would have made billions.
Main problem of Japanese companies right now, especially those that still have high manufacturing bases in Japan while they export heavily to US and Europe, like Panasonic and Sony, is Yen.
It is not 360, or Movies or this or that, it is yen.
Sony is company that globally sells up to $100 billion of goods. Now Yen changes from 127 to 77 since 2007. Which means that on all of their Japanese exports, r&d, etc, etc, Sony gets 40% less money on sale in non-Japanese markets.
This is why BOJ is trying to intervene and this is why Japanise goverment is trying to setup public fund to reorganize all of the TV production into one roof for all the major TV suppliers - they dont want to lose production bases (jobs).
It is the same problem that Toyota has, with 50% of their production in Japan being exported, and now getting 40% less revenue on it.
On the other hand Samsung/Hyundai/Kia's KRW dropped in value 25% since 2006-2008,and hence those companies now gain 25% more on everything they export.
So Sony TV is now automatically 40% more expensive while Samsung's is 25% cheaper.
Sony and rest of the Japanese manufacturing industry has a lot bigger problem in high strenght of Yen than in anything else. If Japan doesnt solve that issue soon, look at not only moving even more of production to outside of japan, but also a lot of their 70,000 Japanese workforce moved from there as well. Workforce is huge cost burden and due to high yen, it is now 40% more expensive than in 2007 (all 70,000 of them in Japan).