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

Getty
Show Hide image

Leader: Trump and an age of disorder

Mr Trump’s disregard for domestic and international norms represents an unprecedented challenge to established institutions.

The US presidency has not always been held by men of distinction and honour, but Donald Trump is by some distance its least qualified occupant. The leader of the world’s sole superpower has no record of political or military service and is ignorant of foreign affairs. Throughout his campaign, he repeatedly showed himself to be a racist, a misogynist, a braggart and a narcissist.

The naive hope that Mr Trump’s victory would herald a great moderation was dispelled by his conduct during the transition. He compared his country’s intelligence services to those of Nazi Germany and repeatedly denied Russian interference in the election. He derided Nato as “obsolete” and predicted the demise of the European Union. He reaffirmed his commitment to dismantling Obamacare and to overturning Roe v Wade. He doled out jobs to white nationalists, protectionists and family members. He denounced US citizens for demonstrating against him. Asked whether he regretted any part of his vulgar campaign, he replied: “No, I won.”

Of all his predilections, Mr Trump’s affection for Vladimir Putin is perhaps the most troubling. When the 2012 Republican presidential nominee, Mitt Romney, warned that Russia was the “number one geopolitical foe” of the US, he was mocked by Barack Obama. Yet his remark proved prescient. Rather than regarding Mr Putin as a foe, however, Mr Trump fetes him as a friend. The Russian president aims to use the US president’s goodwill to secure the removal of American sanctions, recognition of Russia’s annexation of Crimea and respect for the murderous reign of the Syrian president, Bashar al-Assad. He has a worryingly high chance of success.

Whether or not Mr Trump has personal motives for his fealty (as a lurid security dossier alleges), he and Mr Putin share a political outlook. Both men desire a world in which “strongmen” are free to abuse their citizens’ human rights without fear of external rebuke. Mr Trump’s refusal to commit to Nato’s principle of collective defence provides Mr Putin with every incentive to pursue his expansionist desires. The historic achievement of peace and stability in eastern Europe is in danger.

As he seeks reconciliation with Russia, Mr Trump is simultaneously pursuing conflict with China. He broke with precedent by speaking on the telephone with the Taiwanese president, Tsai Ing-wen, and used Twitter to berate the Chinese government. Rex Tillerson, Mr Trump’s secretary of state nominee, has threatened an American blockade of the South China Sea islands.

Mr Trump’s disregard for domestic and international norms represents an unprecedented challenge to established institutions. The US constitution, with its separation of powers, was designed to restrain autocrats such as the new president. Yet, in addition to the White House, the Republicans also control Congress and two-thirds of governorships and state houses. Mr Trump’s first Supreme Court appointment will ensure a conservative judicial majority. The decline of established print titles and the growth of “fake news” weaken another source of accountability.

In these circumstances, there is a heightened responsibility on the US’s allies to challenge, rather than to indulge, Mr Trump. Angela Merkel’s warning that co-operation was conditional on his respect for liberal and democratic values was a model of the former. Michael Gove’s obsequious interview with Mr Trump was a dismal example of the latter.

Theresa May has rightly rebuked the president for his treatment of women and has toughened Britain’s stance against Russian revanchism. Yet, although the UK must maintain working relations with the US, she should not allow the prospect of a future trade deal to skew her attitude towards Mr Trump. Any agreement is years away and the president’s protectionist proclivities could yet thwart British hopes of a beneficial outcome.

The diplomatic and political conventions embodied by the “special relationship” have endured for more than seven decades. However, Mr Trump’s election may necessitate their demise. It was the belief that the UK must stand “shoulder to shoulder” with the US that led Tony Blair into the ruinous Iraq War. In this new age of disorder, Western leaders must avoid being willing accomplices to Mr Trump’s agenda. Intense scepticism, rather than sycophancy, should define their response.

This article first appeared in the 19 January 2016 issue of the New Statesman, The Trump era