Sony posts record loss

Japanese giant sees almost 10 per cent drop in revenue for the fiscal year ended 31 March 2012

Sony’s share price hit a three-year low this week as it revealed a record loss of $5.7bn (£3.5bn) for its financial year ended 31 March 2012.

The troubled Japanese electronics giant attributed the loss to the "unfavourable" impact of foreign exchange rates, the impact of the Great East Japan earthquake and the floods in Thailand, and deterioration in market conditions in developed countries.

Sony hit the headlines earlier this year with the news that it was axing a further 10,000 jobs as chief executive Kazuo Hirai looks to steer the firm back to profitability.

For the year ended 31 March 2012, Sony reported net turnover of ¥6.49tn ($79.1bn) an almost 10 per cent decline on the previous year. After expenses, the vendor reported an operating loss of ¥67.3bn for the year.

Sales decreases were mainly attributed to Sony’s Consumer Products and Services (CPS), and Professional, Device and Solutions (PDS) divisions. CPS includes Sony’s consumer electronics business which covers LCD TVs, PCs, photography and gaming.