Just four days after Sony Corp.. shares dropped to their lowest level in 25 years in Tokyo trading on Monday, the electronics giant reported a record loss of $5.7 billion in the fiscal year ending in March.
The loss, which was lower than the previous estimates of $6.4 billion, marked the fourth straight year the company wraps up the year with a loss.
The announcement was preceded by Sony’s stock falling as much as 4.4 percent to 1,214 yen and changed hands at 1,222 yen, the lowest level for the stock since April 25, 1987, according to data compiled by Bloomberg.
The company has credited the loss to foreign exchange rates, the March 2011 magnitude 9.0 earthquake, the floods in Thailand, and the unfavorable market conditions in developed countries.
Nevertheless, the company is forecasting consolidated operating income for the upcoming fiscal year due to “a significant improvement” in operating results in consumer products and professional devices that are expected to recover from the earthquake and flood impacts.
Sony is not alone in its financial struggle. Its fellow Japanese electronics company Panasonic Corp. is expecting to announce nearly $10 billion in annual loss on Friday, according to the company’s estimates from earlier this year.