Sony sees profit drop on increased expenses

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Company reports record quarterly sales

By Martyn Williams, IDG News Service January 28, 2004

Sony Corp. achieved record quarterly sales in the last three months of 2003, although its restructuring program, higher spending on semiconductor research, and the strengthening Japanese yen led to a decrease in profit at the Tokyo company.

Sales and operating revenue for the quarter increased 0.7 percent to ¥2.32 trillion ($21.7 billion as of Dec. 31, the last day of the period being reported), Takao Yuhara, group chief financial officer, told a Tokyo news conference on Wednesday.

Operating profit dropped 20.4 percent to ¥158.8 billion and net profit for the quarter fell 26.2 percent to ¥92.6 billion.

In the company's key electronics business, which accounts for more than half of all revenue, results were mixed. Sales in the company's four geographic regions, Japan, U.S., Europe and others, all achieved double-digit growth on a local currency basis. However the difference in the value of the Japanese yen compared to a year ago and much lower intra-company sales resulted in overall sales in the business unit increasing 0.4 percent to ¥1.5 trillion for the quarter.
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