Sony Corp.’s chief financial officer Kenichiro Yoshida. Photo: ReutersJapan’s Sony Corp. said CEO Kazuo Hirai would be handing over the reins to finance chief Kenichiro Yoshida, while at the same time forecast a record annual profit that highlights the revival in fortune that they have both engineered.
Once a market leader in consumer electronics, the maker of the Walkman and Trinitron TV in recent years fell behind the likes of Apple in innovation and the more nimble Asian rivals in price competition. It was the Hirai-Yoshida duo that helped Sony streamline its unprofitable electronics businesses and capitalise on the spread of smartphones with image sensors.
People familiar with Yoshida describe him as a reserved foil to the more flamboyant ‘Kaz’ Hirai, but also a forceful partner who pushed through many controversial changes, including the sale of the Vaio PC division and spinning off the TV business, to swerve the company away from losses.
As a vindication of these measures, Sony quadrupled its profits in the three months ended December, its best-ever third quarter on record, on robust demand for image sensors as smartphone makers increasingly adopt dual-lens rear cameras.
The company is also on track for the strongest annual showing in its 72-year history – with its latest estimate for operating profit being 720 billion yen for the year through March, versus a prior forecast of 630 billion yen that would have also been a record high.
Yoshida’s next challenge would be to make sure Sony keeps up this momentum even after the impact of restructuring and demand for image sensors wear off, analysts said.