Sony 1Q17 earnings show overall success, more mobile sales
Japanese tech conglomerate Sony has logged over 15 percent in overall revenue gains and has nearly quadrupled its net income over the course of a year. It has wrapped its first quarter of fiscal year 2017 with a ¥80.9 billion return on gross earnings of about ¥1.86 trillion.
Most of the difference between those figures come activities related to two focus points: last year’s earthquakes in Kumamoto, Japan, and the sale of equity in a camera sensor business. Operating income figures barring one-time expenses more closely reflects the gross revenue change at a 10.4 percent jump to ¥120.8 billion. The company also benefited from a strengthening Dollar, helping US sector sales figures with a 1 to 3 percent conversion boost from a year ago.
Semiconductors proved to be the leading unit for the company as revenues improved by 41.4 percent. At ¥55.4 billion, operating income for the item has effectively made up for a year-ago loss and then some. The second-best income before external costs came from the imaging unit.
But it’s the mobile business we’re on about as Sony a 2.5 percent drop in revenue to ¥181.2 billion as “essentially flat” — it was the only unit of nine to lose out in this respect. The division was able to cut general business and R&D costs and dramatically increase operating income from ¥400 million all the way to ¥3.6 billion. Sales rocketed 9.7 percent to 3.4 million units.
The year’s forecast remains unchanged as revenue should rise to ¥820 billion (up 8 percent from 1Q16), though operating income should effectively be halved to ¥5 billion as the company continues to sell people on the idea of owning an Xperia phone. 16.5 million units are expected to be sold.