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Sunday, April 15, 2007

Sony Profit To Rise 'Sixfold'.

Shares in Sony climbed to a five-year high on Friday after a newspaper predicted a sixfold increase in its profits for the current year.

Strong sales of the Playstation 3 could push Sony's pre-tax income to 400bn yen ($3.4bn; £1.7bn), a sharp increase on the 60bn yen expected for 2006.

Launching the next-generation console is expected to put a 200bn yen hole in Sony's finances.

Sony closed the session up 2.7% at 6,510 yen.

Demand

The world's second-largest electronics maker will also benefit from increased demand in its liquid crystal display (LCD) televisions in the US and European markets, according to the Nikkei business daily.

Analysts cited in the newspaper expected group sales in the year 2007-2008 would be up 6% to 8.7 trillion yen, boosted by a two-thirds increase in sales of LCD TVs to 10 million in 2007-2008.
A 67% rise in PS3 shipments to 10 million units, better semi-conductor production yields and cost-cutting should also boost the business, according to the newspaper.

Source

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