Sony Posts Third Quarterly Profit of 870 Million Dollars
Sony HQ, Japan
Sony has just announced that they have made a third quarter net profit of $870 million (£545 million) for the last three months of 2009 providing further evidence that the global economic recovery is starting to affect major corporations. The profit, whilst it “significantly exceeded expectations” is only likely to reduce the net loss for the entire financial year.
The Sony profits are believed to be an indicator that the global economy is experiencing a very gradual recovery, a belief supported by other technology companies such as Hitachi and Samsung posting profits for the last quarter. One of the major reasons behind the posted profit is believed to be due to Sony reducing the cost of its Playstation 3 console by around 25%, a price drop that according to reports resulted in an increase of 76% in sales for the PS3 during the Christmas period. Additionally, many market commentators believe that corporate restructuring and the streamlining of the supply chain are also major factors in the improved financial outlook.
The $870 million net profit equates to around 79 billion yen and can be considered a significant improvement on last year’s third quarter when a profit of just 10.4 billion yen was recorded. This is the first time Sony have reported a profit in five quarters and whilst it will not create an overall profit for the financial year (figures due on March the 31st), it does represent a major improvement for the Sony Corporation.
