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Poor TV Sales Send Sony’s Stock to 31-Year Low
Due to “forecasting earnings that missed estimates because of a failure to end losses from TVs,” Sony’s stock has plummeted precipitously according to a report from Bloomberg. Sony’s “market value” is now lower than it’s ever been since the summer of 1980.
The current market value of the company is $17.5 billion. The company’s market value in the year 2000 was more than $100 billion. Sony’s stock dropped 6.4 percent after its fiscal year 2011 financials came out. Sony’s “stock declined 18 percent this year, extending the 53 percent drop last year,” Bloomberg notes.
Sony’s market struggles are almost entirely due to its ailing television division, with “investors remain[ing] skeptical about predictions for returning to profit this year.” Sony expects its television sales to continue its downward trend another 11 percent in 2012.
However, Sony does expect to post an overall profit this fiscal year “after four consecutive years of losses.” Predicted profits are in the range of $37 million.
Bloomberg also confirms earlier reports out of Japan that Sony intends on laying off six percent of its worldwide workforce, amounting to 10,000 people.
Due to “forecasting earnings that missed estimates because of a failure to end losses from TVs,” Sony’s stock has plummeted precipitously according to a report from Bloomberg. Sony’s “market value” is now lower than it’s ever been since the summer of 1980.
The current market value of the company is $17.5 billion. The company’s market value in the year 2000 was more than $100 billion. Sony’s stock dropped 6.4 percent after its fiscal year 2011 financials came out. Sony’s “stock declined 18 percent this year, extending the 53 percent drop last year,” Bloomberg notes.
Sony’s market struggles are almost entirely due to its ailing television division, with “investors remain[ing] skeptical about predictions for returning to profit this year.” Sony expects its television sales to continue its downward trend another 11 percent in 2012.
However, Sony does expect to post an overall profit this fiscal year “after four consecutive years of losses.” Predicted profits are in the range of $37 million.
Bloomberg also confirms earlier reports out of Japan that Sony intends on laying off six percent of its worldwide workforce, amounting to 10,000 people.
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