Sony Misses Profit Forecast for Quarter

Sony Corp., the world’s largest audiovisual electronics maker, said Thursday that it slid into the red in its fiscal second quarter, missing market forecasts as a weakening global economy battered its electronic parts business.

But the company stuck to its profit forecasts for the year as its PlayStation 2 game console scored higher profit despite the Sept. 11 attacks, and sales of Sony-brand goods held their own.

“In the game business, we have seen almost no impact from the economic slowdown or the terrorism in the U.S.,” Sony Chief Financial Officer Teruhisa Tokunaka said.

He said cost-cutting efforts would produce savings of $610 million to $814 million for the business year starting in April.

Sony reported a consolidated net loss of $107 million for the July-September quarter and an operating loss of $28 million, on revenue $14.57 billion.

Analysts had expected weak results after a profit warning in late September, but their forecasts for the operating figure had still indicated a modest profit.

Some said the weaker-than-expected numbers cast doubts over Sony’s full-year forecasts.

Sony shares dropped 41 cents to close at $40.43 on the New York Stock Exchange.