Sony reported mixed results last fiscal year as sales declined last quarter, and has projected that its operating income will take a JP¥100 billion (US$682 million, A$1 billion) hit from United States tariffs.
Its sales last quarter were JP¥2.63 trillion, falling 24% year-over-year and missing estimates of US$20.4 billion (¥2.99 trillion). Earnings per share across the fiscal year were JP¥187.92, up ¥30.78.
“Under the tariff rates we assumed, we expect to be able to manage the impact on the profitability of our continuing operations this fiscal year to approximately JP¥100 billion, or less than 10% of the operating income forecast we just showed, by stockpiling strategic inventory in the U.S., adjusting product shipment allocations on a global basis, raising prices on certain products with an eye on market trends and other means,” the company said.
Sony's Game & Network Services, Entertainment, Technology & Services, and Imaging & Sensing Solutions segments are likely to be impacted by Sony's projects.
Game & Network Services sales were up 9% to JP¥4.67 trillion last fiscal year, which the company credited to growth in third-party software sales. However, PlayStation 5 console sales fell by 38% year-over-year last quarter. Its operating income rose 43% to a record high of ¥418.8 billion over the year.
Music sales rose 14% to JP¥1.84 trillion last fiscal year, with operating income also growing by 18% to reach a record high.
Its Entertainment, Technology & Services division saw sales decline 2% to JP¥2.41 trillion, however, as television and smartphone sales declined. Operating income was up 2% to ¥190.9 billion across the year, but the segment sank to an operating loss of JP¥20.42 billion last quarter.
Sony will partially spin off its Financial Services arm in October, the company said.
For its continuing operations, the company’s guidance for the next fiscal year projects sales will drop by 3% to JP¥11.7 trillion due to tariffs, while operating income will remain flat at ¥1.28 trillion. Net income will drop by 13% to ¥930 billion.
Sony’s share price (TYO: 6758) closed at JP¥3,788, up from its previous close at ¥3,654. Its market capitalisation is ¥23.3 trillion.
