Tax charge of $3.7 bil hits corporation
TOKYO — Sony said Tuesday it expects to make a net loss of 520 billion yen ($6.4 billion) for the fiscal year that ended March 31, a company record.The loss is more than double the figure forecast in February, which was 220 billion yen ($2.7 billion). It compares with 259.6 billion yen ($3.2 billion) in the red column for the preceding fiscal year. The main reason for the change is an additional tax charge of 300 billion yen ($3.7 billion) in the fourth quarter of 2011/12 fiscal year, mostly in the U.S. Chief financial officer Masaru Kato, attending a news briefing in Tokyo on Tuesday, also identified a strong yen and poor demand as reasons for the dismal results. The company said in a statement that the additional expense will not impact its consolidated operating income or cash flow. Sony still expects to make an operating profit in the current year amounting to 180 billion yen ($2.22 billion), compared with a 95 billion yen ($1.2 billion) loss in the 2011/12 fiscal year. This news follows on the announcement Monday that Sony plans to cut 10,000 jobs or 6% of its worldwide total in the current year. On Thursday new prexy-CEO Kazuo Hirai will outline the company’s future strategy for the media.