Sony forecasts first annual loss in 14 years: 2009 will be worse

Sony Corp., has now forecast their first annual loss in 14 years following a very bad 2008, with 2009 set to be much worse. Sony, the world's second largest maker of consumer electronics is now feeling the pressures of a worldwide recession, as consumer demand keeps falling. Sony has said in a statement that their net loss will be 150 billion yen ($1.7 billion); this is for the 12 months ending March 31. This deficit is very different from the 74 billion yen loss that Bloomberg had forecast and the 150 billion yen profit that Sony had forecast way back in October 2008. This poor outlook has now put a lot of pressure on Chief Executive Officer Howard Stringer, he has promised to increase Sony's profit by 5%. He will have to introduce a number of cost cutting measures, as consumer spending will be much lower in 2009. Read full article