Japan Chemical Trading Blog
Unchanged Chronic Deficit State of Sony
On September 17, Sony made a downward revision of its previous prospects, announcing that the final result for this quarter will be a deficit of 230 billion Japanese yen.
Looking at their recent quarterly results, the last 5 consecutive quarters ended with a deficit (although March 2013 looks like it is in the black, deducting an extra income from the real estate disposal, it is substantially deficit).
The enormous legacy established by great predecessors such as Masaru Ibuka, Akio Morita, Norio Oga has been eaten away.
The main cause of this time’s downward revision is a slump of the smartphone business.
Looking at their way of doing this business as an outsider, it is like they just do it without any tactics and just get defeated.
If this quarter is in the red again, that makes 3-quarter consecutive deficits since Mr. Hirai took the president position.
From the common sense of the business world, he should be replaced.