Sony posts record 07 sales, hints at less profitable 2008

By Chris Nicholls

TOKYO: Sony has posted record sales figures for the 2007 fiscal year, but showed declining Bravia profits and flagged a slower 2008.

Sony’s 2007 annual report showed total sales rose 6.9 per cent to 88,714 billion yen (AU$904 billion), with a staggering 421.9 per cent rise in operating profit over 2006 to 3,745 billion yen (AU$38 billion).

Its consumer electronics division posted an 8.9 per cent rise in sales to 66,138 billion yen (AU$674.2 billion) while operating profit for that division also rose 121.8 per cent to 3,560 billion yen (AU$36.3 billion).

However, while Sony forecast another rise in sales for the 2008 fiscal year, up one per cent to approximately 90,000 billion yen (AU$917.4 billion), with an operating profit rise of 20 per cent, it said net profit for 2008 would drop 22 per cent to 2,900 billion yen (AU$29.6 billion) from 3,694 billion yen (AU$37.6 billion) this year.

In a negative sign the Bravia division, still in the red after several years, Sony also said Bravia profits fell and would continue to fall next year, despite expected sales increases. It did not give a reason for 2007, but said the expected profit falls would result from the rising yen against the US dollar in 2008.

Video game division sales rose and losses fell, though, with only 1,245 billion yen (AU$12.7 billion) in losses, down from 2,323 billion yen (AU$23.7 billion) in 2006.

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