LCD TVs help Sony return to profitability
July 31, 2006
Robust sales of Sony’ Bravia brand LCD televisions and Cybershot digital cameras gave the company a better than expected quarterly profit.
A weaker yen also helped Sony overcome valuation losses at its life insurance unit and start-up costs for its PlayStation 3 game console, Reuters reported.
The first quarter result shows a substantial improvement in electronics division's profitability, according to Mitsushige Akino, chief fund manager at Ichiyoshi Investment Management.
The TV-led turnaround at its electronics unit is symbolic, as Ryoji Chubachi, Sony's president, has said that there would be no Sony revival without TV revival. Sony saw its liquid crystal display (LCD) TV sales soar fivefold compared to April to June from a year earlier, Reuters reported.
Sony earned an operating profit of 27 billion yen ($233 million) from April to June, topping a forecast of 18 billion yen and recovering from a 7 billion yen loss a year earlier.