Sony doubles forecast of annual loss to $6.4bn

Sony doubles forecast of annual loss to $6.4bn

Sony has forecasted an annual loss of $6.4bn, double its previous estimate.

The company blamed tax expenses related to its business in the US. It will be the company's fourth year of losses.

Further details could emerge on Thursday when Sony's new chief executive, Kazuo Hirai, is expected to outline his strategy.

Reports say the company is planning 10,000 job cuts as it exits businesses that are not profitable or central to the firm's strategy.

Sony still expects to make an operating loss of $1.2bn for the year.

The company's performance has been dragged down by its television business which has lost money for eight years.

Analysts will be keen to hear what the new chief executive has planned for that unit.

"The interesting question is: What number of TVs do they expect to sell in the future?" said Pelham Smithers, who runs his own consultancy that specialises in electronics firms.

"Selling around 20 million units a year is too small to be price competitive and too big to be a niche player," he told BBC News.

source: bbc.co.uk