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Sony gloom deepens as operating loss looms
2009-01-23 15:11  Financial Times


Sony plunged deeper into crisis yesterday after the consumer electronics group warned it would suffer its first full-year operating loss in 14 years as it tries to cope with the global economic downturn and strong yen.

The warning came on a day of gloom for the technology sector as weakening consumer demand prompted Microsoft to launch its first company-wide job cuts in its 34-year history with up to 5,000 jobs to go. Nokia also revealed a fall in 2008 profits and issued a gloomy forecast of a 10 per cent fall in global industry sales of mobile phones. In Korea, LG Electronics reported its first net loss in seven quarters as margins for its handsets and flat-panel TVs fell amid a price war.

Sony's forecast of a Y260bn ($2.9bn) operating loss in the year to March 2009 was worse than even the most pessimistic market forecasts, intensifying pressure on its management to turn the company round.

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