Sony rules out pictures biz sale, committed to turnaround
TOKYO (Reuters) - Sony Corp on Thursday said it does not plan to sell its pictures business after suffering a $1 billion writedown, and instead aims to turn it around by adding sales channels and making more use of movie characters.
"We believe in long-term upside potential for pictures," Chief Financial Officer Kenichiro Yoshida said at an earnings briefing, reiterating that Sony continues to regard the business as important to the group.
The pictures writedown, brought about by a shrinking market for movies on disc, prompted Sony to cut 11 percent off the group's full-year operating profit outlook to 240 billion yen.
The cut could have been more severe were it not for a weaker yen and Chinese smartphone makers' strong demand for Sony's image sensors - itself a business only just recovering from earthquake damage.
Sony's semiconductor division, which makes the sensors, is now likely to lose only 19 billion yen on an operating basis this financial year, rather than the 53 billion yen previously forecast. Even so, fluctuation in the smartphone market means Sony has to maintain a cautious stance, Yoshida said.
The pictures division, which also includes media networks and television programs, underpinned Sony's earnings while its core consumer electronics business struggled against low-cost Asian rivals.
Such was the profitability of pictures that activist shareholder Daniel Loeb urged Sony in 2013 to partially spin off the division so it could pump cash into reviving the electronics business. Continued...