Sony has slashed its forecast for the current financial year to the end of March and now expects to record substantially lower sales and a loss for the current year, it said Thursday.
The company said sales are now expected to be ¥7.7 trillion, a 14 percent cut from its previous forecast of ¥9 trillion and net income will drop from an expected profit of ¥150 billion to a loss of the same amount.
Sony attributed the revision to "a deterioration in the business environment as a result of the global economic slowdown, the continued appreciation of the yen, the impact from the decline in the Japanese stock market and an increase in expected restructuring charges."
The company, which is one of Japan's biggest exporters has been hit hard by the recession in many of its biggest markets and the appreciation of the Japanese yen, which makes its products more expensive overseas and reduces the value of profits made overseas when they are brought back to Japan.
Sony kicked off a restructuring in early December and is expected to detail more cuts later Thursday. CEO Howard Stringer is scheduled to speak at a news conference at 5:30p.m. local time (8:30a.m. GMT) at which the details will be announced.