Sony Stares at Potential $2 Billion Loss for 2008

So much for the $2.2 billion operating profit Sony predicted just three months ago. Perhaps the company was looking at the balance sheet upside down, because now Sony is expected to report a 100 billion yen (that's $1.1 billion in homegrown U.S. currency) loss for fiscal 2008 ending in March, says Nikkei business daily. And that's just the beginning. Nikkei says the loss could reach as high as $2 billion, and will depend on whether or not Sony is successful in cutting inventory in Q1 2009. If Nikkei's prediction comes true, this will mark Sony's first loss in 14 years. But unlike the one-time charge the electronics took for its picture division over two decades ago, losses this time around can be attributed to less than expected sales of Sony brand flat-panel TVs and other electronics, particularly in the U.S. market. Just last month Sony said it would cut 16,000 jobs as part of a reorganization effort . read more (link)