Sony cuts outlook citing restructuring, competition

Sony slashed its full-year profit outlook today by nearly 90 percent and said it slumped to a first-quarter loss because of falling prices and a big charges for reviving its ailing consumer products business. Sony now expects net income of 10 billion yen, or $89.3 million, for the fiscal year ending March 31, 2006, compared with an April forecast of 80 billion yen, or $714 million. Sales will be 7.25 trillion yen, 3 percent lower than its April outlook, the Tokyo-based company said in a statement. Sony blamed the downgraded outlook on bigger than expected restructuring costs, falling electronics prices, sliding television sales, and falling behind other rivals in hit products like the iPod.

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