ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronEye IconIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon PrintSite TitleTitle ChevronIcon Twitter
Japan-Update

Sony poised for first record profit in 20 years

Games, semiconductors, other businesses contribute to balanced earnings

TOKYO -- Sony is expecting its first record group operating profit in 20 years for fiscal 2017, the company announced Tuesday, a comeback attributed to a balanced business model that generates income from wide-ranging operations that extend from electronics to finance.

The Tokyo-based company said it's on track for a 630 billion yen ($5.55 billion) operating profit for the year ending in March. 

Chief Financial Officer Kenichiro Yoshida was cautious in announcing the upgrade. "Rather than a recovery," the first record profit in 20 years means "we could not surpass ourselves for 20 years," he said. "We will continue to manage the business without dropping our guard."

The semiconductor segment is projected to log 150 billion yen in operating profit for the year ending in March, bouncing back from a 7.8 billion yen loss the previous year and 20 billion yen higher than originally forecast.

Image sensor sales are growing with the rise of dual-camera smartphones. The chip business booked a loss in fiscal 2016 due to earthquakes in Kumamoto in southwestern Japan but is set to improve significantly this fiscal year.

Sales of digital single-lens reflex cameras and organic light-emitting diode televisions are on the rise, as are PlayStation 4 sales. Operating profit for the game and network service segment is projected at 180 billion yen.

The latest estimate factors in roughly 50 billion yen set aside for responding to possible business emergencies. Barring any unexpected losses, the operating profit could exceed the new projection.

Sony is planning an annual dividend of 25 yen per share, up 5 yen from the previous year.

(Nikkei)

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this monthThis is your last free article this month

Stay ahead with our exclusives on Asia;
the most dynamic market in the world.

Stay ahead with our exclusives on Asia

Get trusted insights from experts within Asia itself.

Get trusted insights from experts
within Asia itself.

Try 1 month for $0.99

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this month

This is your last free article this month

Stay ahead with our exclusives on Asia; the most
dynamic market in the world
.

Get trusted insights from experts
within Asia itself.

Try 3 months for $9

Offer ends July 31st

Your trial period has expired

You need a subscription to...

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers and subscribe

Your full access to the Nikkei Asian Review has expired

You need a subscription to:

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers
NAR on print phone, device, and tablet media