The news
Sony is today warning of a 38 per cent reduction in its forecast profits for the year ending March 31, 2007. This is mainly as a result of having to recall millions of laptop batteries that might cause fires and of lower-than-expected income from PlayStation 3 and PlayStation Portable.
Net income for the year is now expected to be 80 billion yen (£361 million/US$676 million), compared to the 130 billion yen (£586 million/US$1.1 billion) forecast on July 27. This fall is greater than many analysts have been suggesting but the revision, in our view, may still turn out to be overly optimistic.
The revised forecast makes no mention of the impact on profits of Sony's push to get Blu-ray Disc established as the high-definition disc-format of choice in competition with the HD DVD format, so the company presumably knew before its last forecast of the likely impact that would have.
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Sony's press release is on page two and includes consolidated results for second quarter of its financial year ending March 31, 2007 when the company slipped into the red.
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HEXUS.links
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External.links
Sony investor relations - Earnings releasesFujitsu - Notice Regarding Sony Battery Pack Replacement Program (September 30, 2006)
Fujitsu - Notebook Battery Exchange Program (June 2005)
Sony Corporation - Sony to Initiate Global Replacement Program for Notebook Computer Battery Packs
Toshiba - battery recall page (September 28 - addition recall imminent)
Toshiba - battery recall page (September 19 recall)
Lenovo - battery recall page
Lenovo - battery recall FAQ
US Consumer Product Safety Commission - Lenovo and IBM Announce Recall of ThinkPad Notebook Computer Batteries Due to Fire Hazard
US Consumer Product Safety Commission - Recalls and product safety news
US Consumer Product Safety Commission - Apple Announces Recall of Batteries Used in Previous iBook and PowerBook Computers Due To Fire Hazard
Apple - Battery Exchange Program iBook G4 and PowerBook G4
Apple - FAQ - Battery Exchange Program iBook G4 and PowerBook G4
Dell USA - Battery Recall page
