Sony Corp. unveiled a strategy that it says will create an operating profit of $4.2 billion in three years. The Wall Street Journal reports that the media giant plans to focus on the growth sectors, including entertainment, games and mobile devices.
“As part of ongoing restructuring efforts to reach that goal by the business year ending March 2018, Sony plans to spin off its audio and visual segments into a separate, wholly owned subsidiary by around October this year to focus on faster-growing businesses such as movies, music, videogames and image sensors, the company said,” WSJ reports.
Last year Sony spun off its TV unit, which the firm says is about to see its first annual profit in 10 years.
The WSJ report adds: “In its business strategy report for the next three years, Sony set a goal of achieving more than 10% return on equity, a broad measure of profitability, putting profits ahead of volume.”
At a news conference, Sony CEO Kazuo Hirai said: “The ROE will be the most important gauge for Sony.”
The company is predicting ROE of -7.4% for the current business year, the report notes.
WSJ adds: “Sony has been cutting costs aggressively, and last year sold its personal computer business in an effort to turn around its electronics arm. It is still struggling with the effects of a cyberattack on its movie division last year.”