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Business

Sony forecasts 3.5 times jump in net profit for current fiscal year

Increase due to recovery in chip and film businesses

Kenichiro Yoshida, Sony's chief financial officer, announces the company's financial results and forecast in Tokyo on April 28.

TOKYO -- Sony said Friday that it projects a consolidated net profit of 225 billion yen ($2.29 billion), based on generally accepted accounting standards, for the year ending March 2018 -- a 3.5 times increase from the previous year.

This is due to the recovery in its chip business, which handles image sensors and other products, as well as the film business.

Its gaming arm, which has maintained brisk PlayStation 4 console sales, will also boost revenues.

Last fiscal year, the chip business booked 7.8 billion yen in operating losses due to the impact of a series of earthquakes in Kumamoto Prefecture, southern Japan, in April. Sony expects 120 billion yen in operating profit for the current fiscal year. The film business also posted an operating loss of 80.5 billion yen stemming from an impairment loss of more than 100 billion yen. The film unit will see a 39 billion yen in operating profit, the company said.

Sony expects sales to rise 5% to 8 trillion yen for the current fiscal year. Its operating profit is expected to grow 73% to 500 billion yen.

The company made the projections using a yen exchange rate of around 105 yen to the dollar and around 110 yen to the euro, assuming that the yen would appreciate against the two currencies compared to the previous fiscal year.

It also released consolidated financial results for the year ended March 2017. The results showed 7.6 trillion yen in sales, down 6% on the year, and a net profit of 73.2 billion yen, a decrease of 50%.

(NQN)

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