Sony Sees Q3 Sales Drop, but Reports a Small Profit
Sony's sales during the last three months of 2008 dropped by 25 percent due to the slowing world economy and strengthening Japanese yen, but the company still managed to keep its head above water thanks to an exceptional gain from foreign exchange.
The company recorded a fiscal third-quarter net profit of ¥10.4 billion (US$115 million), down 95 percent compared to the last three months of 2007 and its worst third quarter profit in at least ten years. Sales were ¥2.2 trillion, which is comparable to the level of sales reported by Sony in the same period during 2004.
The stronger yen hurt Sony's business and contributed to an ¥18 billion operating loss. However, the company managed to turn an overall profit thanks largely to ¥80 billion it earned from hedging against the currency swing.
