Thursday July 28, 3:38 am ET

Sony Slumps to $65.2 Million First-Quarter Loss on Falling Sales, Restructuring Charges

TOKYO (AP) -- Japanese electronics and entertainment company Sony Corp. said Thursday it slumped to a first-quarter loss, hurt by falling sales and a big charge to restructure its ailing consumer gadget business.

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Net loss totaled 7.3 billion yen ($65.2 million) in the three months ended June 30, compared with a profit of 23.3 billion yen a year earlier, the Tokyo-based company said in a statement. Sales declined 3.3 percent to 1.56 trillion yen ($13.9 billion), from 1.61 trillion yen.

Sony has been fighting off growing competition in consumer electronics from cheaper Asian manufacturers, while falling behind other rivals in hit products like the iPod from Apple Computer Inc.

In March, the company appointed Howard Stringer chairman, the first foreigner to head a major Japanese electronics firm, and charged him with the task to improving results at Sony`s faltering core electronics business.

Profit for the fiscal first quarter was dented by a 15.9 billion yen ($142 million) restructuring charge, of which 15.5 billion yen was dedicated to reviving the electronics units.

Electronics sales declined 1.4 percent to 1.12 trillion yen ($10 billion) in the period. Falling unit prices for such goods as liquid crystal display televisions were responsible for the division chalking up a 35.3 billion yen ($315 million) operating loss, the company said.

Sony also slashed its full-year profit outlook, forecasting net income of 10 billion yen ($89.3 million), compared with an April forecast of 80 billion yen ($714 million). It said sales will be 7.25 trillion yen, 3 percent lower than its April outlook.