Sony announces its first net profit in five years at $458 million, expects to sell 42 million phones this year

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It looks like things may finally be looking up for Sony after suffering massive losses in recent years. The company has announced its latest financial results for the 2012 financial year, and the once-dominant electronics company has now posted its first net profit in five years.

Sony’s net income was at 43.0 billion yen (458 million U.S. dollars), compared to a net loss of 456.7 billion yen in the previous fiscal year. This is despite lower revenues from several of its divisions, including the camera, video game and home entertainment branches.

As for its forecast for the next fiscal year, the company is expecting its operating income to remain flat due to the costs of R&D and marketing for its upcoming PlayStation 4 console. However, the company is anticipating an increase in sales for smartphones — it’s anticipating sales of 42 million smartphones, which is up from 33 million due to  “strong consumer acceptance” for its recently released Xperia Z.

We should also note that the return to profit is largely attributable to the numerous changes CEO Kaz Hirai made since his appointment over a year ago, including the sale of their US headquarters which brought them a much-needed $1.1 billion in cash.

If Sony plans on continuing this renewed success, the holiday launch of the PlayStation 4 has become more important than ever.

[via Engadget, The Verge, image via Jami3.org]

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  1. mukhi

    sony was good for almost everything, and now:
    TV: panasonic, samsung or even LG is better (cost vs. features)
    CD changer/car player: beaten by hitachi/JVC and others (again, cost vs. features). if you can afford, go bose (and not sony)
    MP3 player: killed by ipods. oh well, i still prefer and use my sony 8 GB MP3 player
    (only because of no itunes)
    phone: welcome back with experia z & others but still incompetent w.r.t. samsung and HTC. i had sony music phone; good but cannot appreciate it anymore
    ereder: still shadowed by kindle, nook or even ipad/galaxy tab
    console: although i own PSP, i preferred wii to PS3 primarily because of cost factor
    laptop: owned one, good but sony drivers are horrendous
    BT mouse: NEVER buy one! i have $90 BT mouse, never works. i guess, yet another sony driver issue
    headphone: the only sony product that i can recommend w/o confusion!!!