Sony profits surge with PS4 sales, outweighs smartphone, TV weakness

Sony said its operating profit doubled in the April-June quarter, helped by a strong performance in its games and networks division, even as the firm cut smartphone and TV sales forecasts that analysts had said were too ambitious. Sony said operating profit in the first quarter of its fiscal year surged to $680 million from $350 million a year earlier, easily beating the $160 million expected according to the average of six analysts' estimates according to Thomson Reuters Starmine. A one-off gain from the sale of a technology facility in Japan also contributed nearly $150 million to the quarterly operating profit, Sony said. Citing weaker market demand than previously expected, the company lowered its full-year sales forecasts for smartphones to 43 million handsets from previous guidance of 50 million, and its TV sales target to 15.5 million from 16 million. Sony warned it now only expects to break even on smartphones having previously forecast a $250 million operating profit for the business. Sony stuck to full-year forecasts of a $1.36 billion operating profit and a $49 million net loss as new Chief Financial Officer Kenichiro Yoshida leads a wide-reaching restructuring plan. Sony is axing thousands of white-collar jobs and cutting costs at its headquarters and in sales distribution companies. Reuters