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Sony hemorrhaging money

May 14, 2014

The Japanese electronics maker Sony has posted losses in the billions as it undergoes difficult restructuring to get its tattered balance sheet in order.

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Sony Logo bei IFA Berlin 2012
Image: Odd Andersen/AFP/GettyImages

Japanese electronics heavyweight Sony said Wednesday it lost 128.4 billion yen ($1.25 billion) in the last fiscal year as the company underwent difficult restructuring and shuttered its personal computer (PC) business.

Eliminating any sign that the beleaguered firm's financial woes were over, Sony also posted a 138 billion yen quarterly loss from January to March and added that it also expected a net loss of 50 billion yen in the current fiscal year through March 2015.

Once the forerunner in consumer electronics, Sony has seen profits dwindle as its business is overtaken by firms like Apple and Samsung.

PlayStation 4 buoys sales

On top of a weak yen, booming sales of its popular PlayStation 4 video games console and smartphones tempered losses felt in the company's struggling television business and increased revenues by 14.3 percent to 7.76 trillion yen.

Last month, Sony said it had sold some seven million PS4 consoles around the world since they first hit the market in late 2013.

The company also predicted an operating profit of 140 billion yen through March 2015, adding that its sales would reach 7.8 trillion yen.

Some belt-tightening measures have included plans to lay off some 5,000 employees in the company's computer and TV units, and the sale of its Manhattan headquarters for $1.1 billion.

cjc/ng (AFP, dpa)