Sony Corp warned Thursday of a $2.9 billion annual operating loss citing weak demand, a stronger yen and reorganization expenses which would mean the first loss for the company in 14 years.
Tokyo-based Sony forecasts a 260 billion yen loss for the fiscal year ending March. The company had forecasted a 200 billion yen profit earlier and analysts had expected a loss of 100 billion yen, according to Reuters.
American Depositary Shares of Sony fell $3.35, or 14.84 percent to $19.23 at 11:46 a.m. in New York trading.
While these are extremely challenging times, we must be fully prepared to embrace the opportunities that await us once these dark economic clouds begin to part, said Howard Stringer, Sony's Chief Executive Officer at a a news conference on Thursday, Reuters reported.
In December, the company unveiled a restructuring plan in which is considering to close up to six plants and about 16,000 regular and contract jobs worldwide.