Sony Makes Positive Forecast Despite Current Financial Turmoil

Sony Makes Positive Forecast Despite Current Financial Turmoil

For the first time in four years, Sony Corporation's annual net profit was seen as optimistic, even though the giant electronic company is currently trying to deal with the aftermath of the earthquake in March and some security breaches of their networks, both of which had devastating effects on their business.
As the fiscal year came to an end, supply chains had a lot of physical damage done to them and Sony was forced earlier this week to accept a charge on their tax credits, which amounted to a net loss of $3.2 billion for the company, its largest deficit since 1995, and the second worst one the company has ever experienced.
Sony has stated that it expects to make 200 billion yen in operating profits this year, though some have said that this forecast may be a bit too ambitious for the struggling company.
"Looking at their forecast, it appears Sony is expecting a recovery in the latter half of the year, which is a bullish forecast, but there's a lot of uncertainty and there is a risk they come in below that expectation", said senior economist Koji Takeuchi of Mizuho Research Institute. "It is still unclear what the financial burden of the security breach will be".