Sony Corp. is expected to post a profit of approximately 100 billion yen ($1.1 billion) for its latest quarter, according to the business daily Nikkei. Sony posted their first net loss last year, with the company’s games division similarly suffering. A significant turn around is expected for Sony, in part fueled by a recovery in its game and TV divisions.
The electronics giant is expected to post its first profit in five quarters, but Nikkei’s estimate is higher than other analyst expectations at 100 billion yen.
Although the continuing strong yen means profits can’t be as extreme as the company would have hoped, the increase of PlayStation 3 sales, with the launch of the Slim and its adjoining price cut, should see the games division post its first operating profit in four quarters, according to Nikkei. This prediction is surprising in one sense, since Sony is still reportedly losing money on each PS3 sold.
Job cuts and closed factories will also be responsible for the company’s return to operating profit.
Sony’s shares rose 4.4 per cent following Nikkei’s report, outperforming the Tokyo stock market’s electrical machinery index, up 2.5 per cent. Sony will announce its October-December quarter results on February 4th, presumably alongside PS3 and PSP sales.