As expected, Sony’s second quarter
financial results have taken a hammering because of the global battery recall.
The company recorded an operating loss for Q2 of 20.8bn yen (£93m), down from
an operating profit of 74.6bn yen (£333m) for the same period in 2005.
The results included a massive charge of 51.2bn yen (£229m) to cope with the
cost of having to deal with the recall of 9.6m potentially dangerous batteries.
Dell,
Apple,
Acer,
Lenovo and many other
leading notebook suppliers demanded that Sony bear the brunt of the cost of the
global recalls they undertook after reports of laptops using Sony batteries
bursting into flame emerged in recent months.
At a Tokyo press conference, Sony's chief financial officer, Nobuyuki Oneda,
said: “While sales hit an all-time high in the second quarter, thanks to brisk
sales of electronics products such as
Bravia LCD TVs and
increased revenue from movies, our operating performance tumbled into the red,
largely because of one-off costs related to the global recall of our lithium-ion
batteries."
Sony also suffered on the games front. Its games division reported a 43.5bn
yen (£194m) loss thanks to weakening sales of the PS2 and its titles as well as
lacklustre PSP sales.
Do you agree?
Have your say on this article