Sony profits boosted by PSP shipments

Consumer electronics giant Sony Corporation has revealed its third quarter financial results, showing a 51 per cent increase in revenue that will result in the avoidance of the company's first annual loss in eleven years.

During the third quarter, sales reached 2368 billion Yen (16.66 billion Euro), a 10 per cent increase on the same period in 2004. Net income was posted at 169 million Yen (1.19 billion Euro), marking a 17.5 per cent increase compared to 2004 and more than doubling the 63 billion Yen which analysts had estimated for the period.

The company has adjusted its full fiscal year estimates accordingly, forecasting a profit of 70 billion Yen - a marked difference to the 10 billion Yen loss forecast in October. Contributing factors in the company's financial u-turn include sales of the recently introduced line of new Bravia LCD televisions, which gained a number one market share in the U.S.

The videogame division was also cited as a major contributor, with sales and operating profit up by 48 and 52 per cent respectively, compared to the previous year. Sony attributes this increase to the growing demand for its PSP handheld, which shipped 6.22 million units in the third quarter alone, and has now shipped a combined total of 15 million units worldwide.

The results are bound to be viewed especially favourably by the company's new boss, Sir Howard Stringer, who has instigated a massive restructuring plan that calls for factory closures and a cut in the workforce of approximately 10,000 jobs by March 31st 2008.

Shigemi Nonaka, chairman of Polestar Investment Management Company, stated: "Sony's higher forecast is a positive signal that the restructuring and efforts to improve finances and other reforms are leading to results. It's a turning point.''