Sony Corp. reported its first annual net loss in 14 years and forecast a bigger loss this year, saying the pressure from sliding sales, competition in gadget prices and a strong yen was expected to continue. The Japanese electronics and entertainment company said Thursday it lost 165 billion yen ($1.72 billion) in the January-March quarter, compared to a 29 billion yen profit for the same period the previous year. That brought its full fiscal year loss to a 98.9 billion yen ($1 billion). Sony, which makes Bravia flat-panel TVs and Cyber-shot digital cameras, said it is closing three plants in Japan to help turn its business around. It is also in the midst of cutting 16,000 workers. Sony said no quick recovery was in sight, projecting a 120 billion yen ($1.2 billion) loss for the fiscal year through March 2010. It joins a string of other big Japanese corporations, including Toyota Motor Corp. and Hitachi Ltd., that have announced huge losses and bleak outlooks. Also Thursday, Sanyo Electric Co. said it booked a net loss of 93.2 billion yen ($976 million) for the fiscal year, compared with a 28.7 billion yen profit the year before. It expects to turn a small profit of 7 billion yen this year. Sanyo is being acquired by Panasonic Corp., which is also expected to announce dismal earnings Friday. Sony is closing three plants in Japan by the end of December - one for cell-phone cameras, another for video recorder parts and another for systems used for smart cards. After they are shuttered, the number of plants around the world will dwindle from 57 last year to 49. The company said it was on track with its previously announced plan to reduce 8,000 of its 185,000 jobs around the world, and trim another 8,000 temporary workers who aren't included in the global work force tally. Sony said it was raising its cost reduction efforts from an earlier 250 billion yen by March 2010 to 300 billion yen. Sony's annual sales slid 12.9 percent to 7.73 trillion yen. Sales fell in all key markets: down 20 percent in the US, 17 percent in Europe and 14 percent in Japan. Its fiscal year loss was a reversal from the 369.4 billion yen profit it had a year earlier. Still, the loss was smaller than the company's forecast for a 150 billion yen shortfall.
