Sony Profits Cut by Half; Pioneer Down

Sony Corp. said Wednesday that its profit plunged in the first quarter to almost half year-earlier levels.

In the three-month period ended June 30, 1992, Sony’s pretax profit declined to $214 million.

The electronic giant was hard hit by slow demand stemming from a prolonged global recession. The strong yen also worked against the company, which relies heavily on exports.

Operating costs swelled because Sony had to control production and inventories amid ebbing demand.

Sony Corp. owns two U.S.-based entertainment companies--CBS Records, home to Michael Jackson and Bruce Springsteen, and Sony Pictures Entertainment, parent company of Columbia Pictures and TriStar Pictures.

Sony’s television and monitor screens have enjoyed good growth. But there has been a buildup of inventory in areas not doing as well, such as audio equipment, Vice President Tsunao Hashimoto said.

The company nourishes hopes of a turnaround in the latter half of the year. Overseas markets are on the way to recovery, and Sony intends to step up marketing activities to secure sales of a mini-disc system awaiting its debut.

“The whole world is our market, and we consider it our own responsibility to stir up demand there,” Hashimoto said.

Although it is difficult to judge the future situation, for now Sony sees no reason to lower the full-year profit forecast it announced in May, Hashimoto added.

In May, Sony said it expected net income of $1.42 billion in the 1992-93 business year, up from $1.31 billion the previous year.

Meanwhile, Pioneer Electronic Corp. said its pretax profit in the first quarter plunged 61.5% from the previous year to $78.3 million.

Despite tumbling quarterly profit, Pioneer is also sticking to its May forecast for full-year performance. It expects a profit of $210 million in 1992-93, against $262 million a year earlier.