April 10th, 2012
09:54 AM GMT
(Image credit: Getty Images)
(CNN) – Troubled Japanese electronics giant Sony says expected losses for the year ended March 31 will be more than double earlier forecasts.
In a statement Tuesday, Sony said it would lose 520 billion yen ($6.4 billion), compared to the 220 billion yen ($2.7 billion) it predicted in February.
This would be the company’s fourth consecutive year in the red, presenting a tough “honeymoon period” for incoming CEO Kazuo Hirai (pictured), who succeeded Howard Stringer at the helm on April 1.
Sony blamed tax expenses - approximately 300 billion yen ($3.6 billion) - related to its assets in the United States.
“This additional tax expense is a non-cash charge and does not have any impact on Sony’s consolidated operating income (loss) or cash flow,” its statement read.
Analysts had forecast a full-year loss of 214 billion yen, according to Thomson Reuters.
Earlier media reports Tuesday suggested Sony is preparing to cut its workforce by 10,000, or 6% of its global headcount, as part of a restructuring plan.
According to the Financial Times, the cuts are to be announced on Thursday at a strategy briefing by Hirai. It will be the third significant round of staff reductions at the Japanese group since 2005.
Sony has faced an uphill battle in recent years. Its stock value fell 54% in 2011, hurt by a strong yen that dropped profits brought back home, as well as the twin crises of the March 2011 earthquake and the November floods in Thailand, which hit the company's supply chain. The hacking of Sony's PlayStation network last year, compromising privacy data of millions of subscribers, added to the company's woes.
Shares in Sony closed down 3.5% ahead of Tuesday’s announcement.
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