Sony Corp. announced that it expects to post a massive net loss for the recently concluded fiscal year, with the March 11 earthquake and tsunami in Japan destroying what had been optimistic expectations for the period, The New York Times reported.
A $4.4 billion writeoff on deferred tax assets in Japan is contributing to what will apparently be Sony’s third year in a row of red ink. Sony’s loss for the fiscal year is expected to be $3.2 billion.
“The annual loss would be Sony’s biggest in 16 years, a major setback to chief executive Howard Stringer’s drive to turn around the once-legendary maker of PlayStation video game consoles, Bravia flat-panel TVs and Vaio laptops,” the story reports.
Sony reportedly had damage from the disaster at nine of its plants in northeaster Japan, which disrupted supply chains. The company has also been hit by a series of hacking incidents, leading to a temporary shutdown of its PlayStation Network.
Sony released a preliminary earnings statement today downgrading its expectations in advance of Thursday’s full earnings report.