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Sony Profit Spikes on Sales of Consumer Electronics

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The turnaround is huge with Howard Stringer's strategy or refocussing on the main electronics business on which Sony founded itself and thrived in the post war years. Because results were so poor before this the results are huge on digital cameras , new flat panel tvs, andand other consumer electronics except videogames unit. Sales at the electronics unit increased 21%, and operating profit up by $939 million, for 3rd quarter 2007. Stringer has shed most of the non core businesses including the life insurance unit and an online bank spun off 2 weeks ago for $3 billion in an IPO, and selling some semiconductor operations to Toshiba for $800 million last week. Also gone is Aibo, the robot dog. The battery overheating recalls charges are also behind Sony. And the Sony movie studio is making profits with popular movies. These are not reflected in the announced results for 3rd quarter 2007. About $50 billion of Sony's $70 billion in worldwide sales are from electronics. Sony has tieup with Samsung in tv's and this has helped it improve results in its tv business and collaborate to combine resources where needed. Its also investing in technology with a new type of tv screen 0.12 inches thick , enabled by an organic light emitting diode display. Losses continue to mount on the Playstation 3 with losses this year of $847million and more nimble companies like Nintendo have done better in this field. sales are from electronics


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