Sony has cut its operating profit forecast by 9% for the year that ended last month. It blames long terms impairment at its camera division.
The company has struggled back into profit after years of problems within its hardware manufacturing divisions, notably its TV, personal computers and phones businesses. It is scheduled next week (April 28) to report its detailed results for the 2015-16 year to end of March.
“Due to a decrease in projected future demand, Sony has revised its mid-range plan for the camera module business in the devices segment from the period beginning with the fiscal year ending March 31, 2017,” the company said. It therefore booked an impairment charge ofJPY59.6 billion ($545 million) into the 2015-16 results.
The forecast for operating profits now stands at JPY290 billion ($2.65 billion) compared with JPY320 billion ($2.93 billion.) That compares with JPY68.5 billion ($627 million) in 2014-15.
Sony’s forecast for its net profits however is edged up from JPY140 billion ($1.28 billion) to JPY145 billion ($1.33 billion,) reflecting a reevaluation of its tax position in Japan. In 2014-15 Sony recorded a net loss of JPY126 billion ($1.15 billion.)