Sony profit rises on asset, stock sell-off

Sony Corp, the world's second-largest consumer-electronics maker, reported profit rose more than it projected after selling buildings, chip-making assets and shares of its financial unit.

Net income in the 12 months ended March 31 almost tripled to a record 369.4 billion yen ($3.5 billion), beating its 340 billion yen forecast, the Tokyo-based company said yesterday in a statement. Sony predicted profit will fall 22 percent to 290 billion yen this fiscal year.

Lower earnings this year may increase the pressure on Chairman Howard Stringer, 66, to deliver products that can outsell Nintendo Co's Wii and Apple Inc's iPod. Sony shares are the worst performers this year among Japan's five largest consumer electronics makers.

"Sony has too many businesses, and it is too dispersed," Pascal Masse, who doesn't own Sony shares amid the $1 billion he manages as a fund manager at Aberdeen Asset Management Asia Ltd in Tokyo, said before the results were announced. "There is no indication of what the company wants to do."

Operating profit, or sales minus the cost of goods sold and administrative expenses, will rise 20 percent to 450 billion yen this fiscal year, Sony said.

Operating profit jumped fivefold to 374.5 billion yen in the 12 months ended March 31, compared with the 377.3 billion yen median estimate in the survey.

Sony plans to double its dividend payment to 50 yen a share, it said. Chief Financial Officer Nobuyuki Oneda said the company will unveil a mid-term business plan next month.

Agencies

(China Daily 05/15/2008 page17)