Sony Corp. posted a group net loss of ¥125.9 billion for fiscal 2014 but vowed to achieve a turnaround in years ahead.
The Tokyo-based electronics giant posted a massive net loss for the second consecutive year mainly because of a ¥176 billion impairment charge from its struggling smartphone business and restructuring costs of ¥98 billion, such as layoffs.
Yet Sony appears optimistic about 2015 and forecasts ¥320 billion in operating profit and ¥140 billion in net profit for the new business year that began this month.
While the smartphones business faced tough international competition, Sony has seen steady sales and profits from other units, notably its PlayStation gaming console, imaging sensors, and movie, music and insurance premium revenue.
In addition, its legacy TV business notched its first profit in 11 years with ¥8.3 billion after hemorrhaging cash hand over fist. This allowed Sony to post a ¥68.5 billion operating profit for fiscal 2014 after forecasting a ¥40 billion loss just last September.
Sony expects healthy sales and profits to continue this year, too. CFO Kenichiro Yoshida said the company has staunched the bleeding and will this year prepare the groundwork for sustainable growth.
"I think it's important that we regain trust from the market at this phase, as we repeatedly made downward revisions in the past" he said.
Sony chief Kazuo Hirai announced in February the group would aim to post more than ¥500 billion in operating profit and a return on equity of 10 percent or more by fiscal 2017.