Sony sees return to profit as restructuring pays off

Japanese electronics giant Sony yesterday said it expects to return to profit in the current financial year on the back of tough restructuring measures and a pick-up in demand.

The maker of Bravia televisions, PlayStation game consoles and Cyber-shot cameras forecast a profit of 50 billion yen in the year ending March 2011 as it looks to aggressively launch 3D televisions and related products.

For the financial year just ended, the company reported an operating profit of 31.8 billion yen compared to a loss of 227.8 billion yen the previous year, which was its biggest ever.

Sony announced its second consecutive annual loss of 40.8 billion yen ($440 million) for the past year, narrowing from a loss of 98.9 billion yen previously.

Chief executive officer Howard Stringer, who became Sony's first foreign chief in 2005, is under pressure to turn around the company as it sees its first back-to-back annual losses since it was listed on the stock market in 1958.

The electronics giant has been forced to undergo major restructuring - slashing 20,000 jobs, selling facilities and turning to suppliers for parts - after seeing losses pile up as the financial crisis hit demand.

However, the three months to March saw losses narrow to 56.6 billion yen from 165.1 billion a year earlier, indicating that major restructuring combined with a reviving market are steering Sony back towards health.