Five questions answered on Sony’s slashing of its full-year profit projections

What has Sony said about its revised forecasts?

Japanese-based Sony has slashed its full-year profit forecast by 40 per cent. We answer five questions on the electronic giants profit falling predictions.

What’s Sony’s revised forecast for its profits?

The company is now anticipating to make a net profit of 30bn yen ($305; £190m) in the financial year to 31 March 2014.

This is down from earlier estimates of 50bn yen.

Why has Sony downgraded is profit estimates?

In the July-to-September quarter Sony’s loss widened from 25 per cent from a year ago to 19.3bn yen.

Its Pictures division was a key factor; it made a considerable loss due to some high profile failures. This particular division which includes movie production and TV shows, recorded an operating loss of 17.8bn yen during the period. This is compared to an operating profit of 7.9bn a year earlier.

What has Sony said about its revised forecasts?

"The current quarter reflects the theatrical underperformance of White House Down, while the previous fiscal year included the strong theatrical performance of the Amazing Spider-Man," the firm said in a statement.

What other problems has Sony had?

Things such as a decline in television licensing revenue due to fewer movies being licensed year-on-year, increased competition and slowing global demand for TVs and a decline in TV prices have all had a detrimental effect on the company.

Sony's TV division posted an operating loss of 9.3bn yen for the three months to the end of September.

The firm said that the division's earnings were hurt after it cut the price of its PlayStation Vita consoles.

Its Game division made an operating loss of 800m yen during the period, compared to an operating profit of 2.3bn yen during the same quarter last year.

What about Sony’s competitors - how are they doing?

Sharp and Panasonic reported profits for the July-to-September quarter.

Panasonic reported a net profit of 61.5bn yen for the period, reversing a loss of 698bn yen during the same period a year ago.

Sharp reported a net profit of 13.6bn yen for the quarter, reversing a loss of 17.9bn yen in the previous three months.

It also raised its full-year profit forecast to 270bn yen in the current financial year, up from its earlier projection of 250bn yen.

Sony has slashed its full-year profit forecast by 40 per cent. Photograph: Getty Images.

Heidi Vella is a features writer for Nridigital.com

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5 scenarios that will definitely happen in Ukip Britain

The Ukip general election 2017 manifesto is out. 

On 8 June 2017, Ukip defied expectations and pulled off a 392 majority in the general election. Prime Minister Paul Nuttall swiftly enacted his manifesto pledges – all 63 pages of them.

Now, thanks to Ukip, Britons no longer have to worry about silly things like the EU and multiculturalism. But not everyone has managed to adjust immediately to the Brexit paradise.

1. The beekeeper

Tommy knew right away his bees weren’t happy. They were swarming all over him, buzzing like a razor on a rampage, ready to sting. It was just as well he was wearing his beekeeping suit.

Except, wait a minute? Hadn’t the new Ukip government banned face coverings? Tommy was proud of being a law-abiding citizen. As he slowly removed his protective helmet, he shouted a parting message to his wife: “Enjoy our British honey when I’m gone.”

2. The job

“Thanks for coming,” Martin said to the three job applicants sitting in the glass-walled office. “I’m looking for someone who will be able to monitor the world’s FX markets, and identify any kind of insider trading.”

“I did my PhD in fraudulent FX and spent the last ten years tracking white collar criminals down,” said Gretchen.

“I’m a former trader who worked at three different central banks and makes my own beer on the side,” said Pierre.

“I’m young, unemployed, have no real qualifications to speak of and am under the age of 25,” said Stu. “I’m British.”

Martin shook Stu’s hand. “Welcome aboard,” he said.

3. The rescue

Stanley dodged the falling buildings as he made his way to the harbour, where a red-faced man in khaki was standing looking confused.

“Have you brought vital supplies?” Stanley shouted over the rumble of the earthquake.

“I’m from Britain and I’ve got nosh,” the man said.

“Nosh?” Stanley repeated. “What kind of country sends snacks to an impoverished country in the middle of an earthquake?”

“It’s the Naval Ocean-Going Surgical Hospital,” the man said. “We scrapped our foreign aid target.”

“Oh fuck off,” said Stanley.

4. The family

Helen knew something was different as soon as she stepped inside her parents’ house. “What have you changed this time?” she asked her octogenarian mother. “Is it the cushions? Did you give the door a fresh coat of paint?”

“No, darling,” her father said. “We just installed a sauna and hot tub complex along with an outdoor pool.”

Helen scratched her head. “I know Ukip has kept the triple lock pension guarantee,” she said. “But how can you possibly afford it?”

Her parents giggled so hard Helen began to worry they were having seizures. “Haven’t you heard of inheritable mortgages?” her mother managed to say. “One day, all this debt will be yours.”

5. The clouds

Ronald rubbed his eyes, and peered through the window again. No, he wasn’t seeing things. There was no sun. He stepped out of the house and stared at the sky. Where the bloody hell was it?

Then he remembered the referendum the month before. It had asked Gibraltarians if they wanted to be truly British, and he had ticked yes.

It began to rain.

Julia Rampen is the digital news editor of the New Statesman (previously editor of The Staggers, The New Statesman's online rolling politics blog). She has also been deputy editor at Mirror Money Online and has worked as a financial journalist for several trade magazines. 

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