It's now or never for Sony, says CEO

Sony's Hirai vows to complete an overhaul of the company's electronics business this fiscal year

Sony's top executive vowed to finish reforming its troubled electronics business by next April, saying the company has no choice if it wants to return to growth.

"If we cannot execute all the things we need to get done this fiscal year and generate real results, it will be all but impossible to envision a growth strategy for the mid- to long term," CEO Kazuo Hirai said at a corporate strategy meeting on Thursday.

The urgency comes after miserable results for the year to March 31, 2014, for which Sony posted a net loss of ¥128.4 billion (US$1.25 billion). The performance was attributed to costs related to exiting the PC business and impairment charges related to its overseas disc manufacturing.

The electronics giant has forecast a loss of ¥50 billion for the year to next April, its second round of red ink since a profit was logged in 2013, the first in many years.

However, it believes the reforms will lead to an operating profit of more than ¥400 billion for the year to April 2016, about three times the ¥140 billion operating profit envisioned for the current fiscal year.

Aside from the PC exit, the electronics reforms include splitting out the long-struggling TV business, which Hirai says will turn a profit by April under a new company called Sony Visual Products. It will also cut costs by 20 to 30 percent at its headquarters, support functions and sales companies.

The reforms are expected to generate annual cost savings of over ¥100 billion starting in April 2015. And while Sony's entertainment, insurance and banking businesses have supported the manufacturer as it struggles with reforms, Hirai emphasized the central role of electronics in his bid to revive its fortunes.

"We face an extremely competitive environment for all three of our three core electronics businesses -- mobile, games and imaging," Hirai said. "Our image sensors and batteries will support these three core businesses and provide the foundations for us to provide unique customer value."

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags sonyconsumer electronics

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Tim Hornyak

IDG News Service
Show Comments

Cool Tech

Toys for Boys

Family Friendly

Stocking Stuffer

SmartLens - Clip on Phone Camera Lens Set of 3

Learn more >

Christmas Gift Guide

Click for more ›

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Aysha Strobbe

Microsoft Office 365/HP Spectre x360

Microsoft Office continues to make a student’s life that little bit easier by offering reliable, easy to use, time-saving functionality, while continuing to develop new features that further enhance what is already a formidable collection of applications

Michael Hargreaves

Microsoft Office 365/Dell XPS 15 2-in-1

I’d recommend a Dell XPS 15 2-in-1 and the new Windows 10 to anyone who needs to get serious work done (before you kick back on your couch with your favourite Netflix show.)

Maryellen Rose George

Brother PT-P750W

It’s useful for office tasks as well as pragmatic labelling of equipment and storage – just don’t get too excited and label everything in sight!

Cathy Giles

Brother MFC-L8900CDW

The Brother MFC-L8900CDW is an absolute stand out. I struggle to fault it.

Luke Hill

MSI GT75 TITAN

I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Featured Content

Product Launch Showcase

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?