Sony on Friday cut its sales forecast for the current fiscal year,
citing the impact of a surging yen and slower smartphone sales, as net
profit also took a hit.

But it managed to stay in the black as strong
sales of its PlayStation 4 offset negative impacts from a sharp rise in
the yen and deadly earthquakes in Japan earlier this year which
temporarily shuttered its regional factories.

Revenue in the year
to March 2017 will be down 5.1 percent from its previous forecast to JPY 7.4
trillion ($71 billion or roughly Rs. 4,75,994 crores), Sony said, but it kept its projection of an
JPY 80 billion net profit unchanged.

Sony’s net profit in the
April-June quarter was down about 74 percent from a year ago, partly
owing to a one-time gain a year earlier. The lowered figure still beat
analysts’ expectations of a loss.

Sony previously warned that a pair of deadly quakes in Japan in April would dent its financial results.

quakes, which caused major damage in southern Kyushu and claimed dozens
of lives, forced major firms including Sony and Toyota to temporarily
shutter factories, hitting production and sales.

Costs also included repairing damaged buildings.

April, Sony posted a $1.4 billion fiscal-year profit, boosted by strong
sales of its PlayStation console which has been at the forefront of a
bid to turn around the company’s flagging fortunes.

The profit was only its second since the 2008 global financial crisis preceded years of eye-watering losses.

However, slowing worldwide smartphone demand could hit a lucrative business that makes key parts for mobile devices.

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