Sony expects more losses, vows deeper restructuring

May 14, 2014

Ben Geier is a writer at Fortune.com

FORTUNE -- The coming year will likely be another difficult one for Sony Corp (sne).

According to an earnings release, the Japanese electronics company is expecting it will lose ¥50 billion ($489 million), defying analysts initial projections that the company would turn a profit of ¥59 billion.

The Japanese technology giant also said it will step up its restructuring plan this year and will leave some unprofitable segments.

Sony announced it had lost $1.25 billion for the fiscal year ending March 31, 2014. Next year's losses will mean the firm has posted losses in five out of six years. For the fiscal year ending in 2013 Sony posted earnings of ¥41.5 ($406 million).

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The company's stock price was down nearly 5% before the market opened.

The downturn in Sony's fortunes can be attributed partially to the downturn in sales of its consumer products, such as televisions. Strong sales of smartphones and the Playstation 4 gaming console helped, buts were not nearly enough to make up for other losses.

The devaluation of the yen has also helped Sony's results over the past two years, the Journal noted. Other Japanese multinational corporations have also benefited from the weaker yen, but with the currency now stabilizing, that strength will no longer be available.

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