Make.believe

12 April 2012 By Wayne Arnold

The new CEO aims to reverse $6.4 bln in losses by rewiring the TV unit and pushing further into smartphones and medical devices. One-off charges now may flatter earnings later, but the tech company may need new equity to expand. Sony needs deeper cuts and more radical re-rigging.

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Sony’s new CEO, Kazuo Hirai, unveiled on April 12 a revival strategy. He aims to achieve group sales of 8.5 trillion yen ($104.9 billion) by the year ended March 31, 2015 with an operating margin of more than 5 percent.
Sony confirmed earlier media reports that it would cut around 10,000 jobs - 6 percent of its global workforce - and take a 75 billion yen ($926 million) restructuring charge in the current business year to next March.
Hirai, who took over from Howard Stringer earlier this month, on April 11 doubled Sony’s annual loss forecast for the year ended March 31 to a record $6.4 billion.

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