Japan’s Sony reports declining profit but expects a record for this year

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Category: Business

Listening

Unlocking Word Meanings

Read the following words/expressions found in today’s article.

  1. fiscal / ˈfɪs kəl / (adj.) – relating to money, particularly how a government, business, or organization manages the money it receives, spends, and owes
    Example:

    The company’s fiscal year ends in March, so the accountants are busy preparing and checking the financial records.


  2. earnings / ˈɜr nɪŋz / (n.) – the total amount of money that a person or company receives for the work they do or the products they sell
    Example:

    The company reported high earnings this year because its new video game was very popular.


  3. forecast / ˈfɔrˌkæst / (v.) – to say what is likely to happen in the future by using the information available now
    Example:

    The manager is forecasting a busy month because of the new project, so the team might need to work extra hours.


  4. quarterly / ˈkwɔr tər li / (adj.) – done, produced, or happening every three months within one year
    Example:

    The shop manager checks the quarterly sales to see which parts of the year were the busiest.


  5. edge / ɛdʒ / (v.) – to move slowly and gradually in a particular direction
    Example:

    Fuel prices edged down slightly last week because the supply issues were solved.


Article

Read the text below.

Japanese electronics and entertainment giant Sony Group Corp. reported a 3.4% drop in its annual profit but projected a comeback to record profits for the current fiscal year. Tokyo-based Sony’s net profit for the year through March totaled 1.03 trillion yen ($6.6 billion), down from 1.07 trillion yen in the previous fiscal year.


Ending a plan to release an electric vehicle with Japanese automaker Honda Motor Co. hurt its earnings. Rising costs of computer chips also bit into profit and remain a concern, according to Sony, which has film, music, and video game operations.


Sony is forecasting a 1.16 trillion yen ($7.4 billion) profit for this fiscal year, which would be a record for the company and a 13% jump from the year that just ended.


Annual sales at Sony for the fiscal year that just ended rose 3.7% from the previous year to nearly 12.5 trillion yen, boosted by hit films such as the latest in the Demon Slayer series and Kokuho, and by healthy demand for games and network services.


On a quarterly basis, profit at Sony, which is behind the Bravia and PlayStation brands and the “Spider-Man” movies, fell 63% to 83 billion yen ($529 million) from 224 billion yen in the same period a year earlier. Quarterly sales edged up 8% to 3 trillion yen ($19 billion), said the company, whose musical artists include Bad Bunny and SZA.


Sony is counting on healthy sales from its upcoming films, such as Spider-Man: Brand New Day and Jumanji: Open World, to boost its bottom line for the current fiscal year.


Also, Sony said it would spend up to 500 billion yen ($3.2 billion) to buy back up to 230 million shares. Sony stock, which has been trading at about 3,000 yen ($19) lately, gained 1%.


This article was provided by The Associated Press.


Viewpoint Discussion

Enjoy a discussion with your tutor.

Discussion A

  • Sony is a huge company that operates in many different areas, from electronics like the PlayStation to entertainment like movies and music. In your opinion, is it better for a company to focus on being the best at one thing or to expand into many different industries? Why? Discuss.
  • Sony owns both devices (Bravia and PlayStation) and the content (the movies or games). As a consumer, do you prefer buying products from brands that offer a complete “package” of entertainment and equipment? Why or why not? Discuss.

Discussion B

  • Sony and Honda recently ended their plans to release an electric vehicle together. When two famous companies from different industries fail to work together, what are some possible reasons for this? Discuss.
  • If you were one of Sony’s leaders, what things would you think about before deciding to work with another big company? Would you care more about the other company’s public image, their technology, or how well your employees might work together? Why? Discuss.