- Overall company Operating Income falls -54.3%
- Overall company Revenue falls -7.1%
- Imaging Products & Solutions segment Revenue fall -9.6%
- Imaging Products & Solutions segment Operating Income falls -7.5%
Overall Company Results
Sony financial report for Q3 FY2016 shows a better but still negative revenue growth at -7.1% for the quarter. Operating Income is still taking a hit from an impairment in the Picture segment and from the strong ¥en that is hurting exports, down -54.3%. Forecasts for the rest of the year are a slight improvement in revenue but further falls in operating income to come. Still, shares are up +5% on the day so not as bad as analyst had feared.
- Overall company Operating Income falls -44.9%
- Overall company Revenue falls -10.8%
- Imaging Products & Solutions segment Revenue fall -25.5%
- Imaging Products & Solutions segment Operating Income falls -45%
Overall Company Results
Sony released the first half results for the FY2016 a day after lowering its full-year profit forecast by 10% percent to ¥270b. Given todays results for the first half that turns out to be positive news. Operating Income or profit for H1 FY2016 has fallen by -44.9% from the same period the previous year. It will take a major recovery in the second half to claw back to the new forecast for full-year profits.
It has been difficult for Sony to maintain their profit margins in recent years but at least they can look forward to Q3 that has been their best historically. The problems of earthquakes and rising ¥en appear to be behind them now, for the moment.
Sony reduced its operating profit forecast for the FY2016/3 due to weakening demand for its camera modules made by its devices segment. Operating profit forecast has now been reduced from ¥320B to ¥290B, a drop of -9.4%.
This drop is largely due to an impairment charge of ¥59.6B as projected demand for camera modules into 2017 looks weaker. These camera modules are used both in Smart Phones and Digital Cameras.
Production problems due to the recent earthquake in the Kumamoto region have not as yet impacted on this years results. However, forecasts for next year have been delayed until the full impact of the damages has been evaluated.
Recent news about the fall in iPhone sales and the ongoing fall in Digital Camera sales would back up this assessment of future demand.
Full year results are due out on 28th April 2016.
Sony have released their results for the 3 months ending 31 December 2015. This being their third quarter for the current financial year. Sales for the whole corporation are up just 0.5% from the same period in 2014 but operating income is up 11%. Interim results for the year to date see a rise of 0.1% for sales and a 132.7% rise in operating income.
During this review a thing to note is the change in Yen value with a rise of 5% in the Dollar and fall of 7.5% against the Euro compared with 2014.
Sony is a major technology business who split there results into 10 sectors. The sectors that interest us here are Imaging Products and Solutions (IP&S) and Devices. The IP&S accounts for the Cameras whilst the Devices account for imaging sensors and camera components. The devices are an important part of Sony’s business as they provide many sensors for both own brand cameras, other brand cameras as well as smartphones.