Sony Mobile earnings tumble 34 percent, but cost-cutting means black ink
Sony ends its second fiscal quarter of 2016 on the down side with gross revenue sinking just under 11 percent and operating income down a whopping 48 percent. While a constant currency chart shows that sales were essentially flat year-on-year, the impact of Brexit has meant a very strong Yen — one US Dollar could get you up to ¥120 before, but only ¥104 now.
Even so, the poorest performing unit of the company was in Semiconductors and Components. It wasn’t “performing” poorly per se as it was battered by earthquakes rocking the company’s factories in Kumamoto, Japan. Accounting issues compound its numbers as Sony is offloading its batteries business.
Focusing on Mobile Communications, revenue dropped 34 percent in constant currency (39.6 percent in real terms) to ¥169 billion. There was operating income as opposed to a loss of ¥20.6 billion a year before. While ¥3.7 billion isn’t much to brag about, but it’s an impressive mix of cost-cutting and hedging money on foreign exchanges.
But that’s not to ignore that the Xperia X series phones haven’t been doing the jobs they’re supposed to be doing — making the company money. This is in spite of the company’s revised mission for mobile.