Sony cuts profit forecast as first quarter loss widens

Sony has reported four consecutive annual losses

Japanese electronics maker Sony has cut its annual profit forecast after its first quarter loss widened.

The firm reported a net loss of 24.6bn yen ($314m; £202m) for the April to June period, compared with a loss of 15.5bn yen a year earlier.

It also cut its forecast for net income for the year to 31 March 2013 to 20bn yen, down from a projection of 30bn yen in May.

Sony has been hurt by slowing demand for TVs and a strengthening yen.

However, if Sony does report a full year profit, it would end four consecutive years of losses at the company.

Sony is in the process of restructuring its loss-making TV business and has cut 10,000 jobs.

In April, Kazuo Hirai took over as the new chief executive saying he would revive the company with a focus on game players, mobile devices and digital imaging.

Sony, which was once the biggest name in consumer electronics with products such as the Walkman and the PlayStation, has seen its dominance eroded by the likes of Samsung and Apple.

It comes at a time when the yen has surged in value, which eats into overseas profits for major Japanese exporters.  (BBC.co.uk)