Sony Earnings: Electronics Giant Swings Back to Profit, Raises Outlook

Sony Earnings: Electronics Giant Nets Profit
Sony Earnings: Electronics Giant Nets Profit

Sony (SNE) reported on Thursday that it swung back to profit in its first quarter on strong sales of television, computers and PlayStations. The company also raised its full-year earnings forecast.

The electronics giant earned a net profit of 25.7 billion yen -- or $294 million at current exchange rates -- for the quarter, which ended June 30. In the same quarter last year, Sony lost 37.1 billion yen ($427 million).

Revenue grew 3.8% to 1.66 trillion yen ($19.1 billion) as the Tokyo-based company saw big improvements in sales of LCD TVs, PCs and PlayStation 3 game consoles and game software. Its Consumer Products and Devices Group, which makes televisions and cameras, saw sales grow by 8.9%, while its Networked Product and Services segment, which makes PCs and games, saw revenue shoot up 30.4%.

Sony also swung to an operating profit of 67.02 billion yen ($771.9 million) from a year-ago loss of 25.7 billion yen ($296 million). Analysts had expected an operating loss of 13.1 billion yen ($150.9 million), according to Thomson Reuters.

Looking ahead, Sony raised its forecast for the full year through March 2011, though it expects the yen to keep appreciating. It now expects a net profit of 60 billion yen ($691.1 million), up from its previous estimate of 50 billion yen ($575.9 million). It kept its revenue projection unchanged at 7.6 trillion yen ($87.5 billion). It also lifted its operating profit outlook by 12.5% to 180 billion yen ($2.07 billion), compared with earlier estimates of 152.6 billion yen ($1.76 billion), according to Thomson Reuters I/B/E/S.