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Battery Recall, PS3 Delay Squeeze Sony Profits

Sony Corp. has revised its business forecast downward as a result of a huge lithium-ion battery recall and a delays introduction of its Playstation 3.

Though Sony's sales forecast of ¥8.23 trillion (about $69.4 billion) has not changed, operating profits is estimated to be by ¥50 billion ($422 million), down 62 percent from a July forecast. Net profit was revised downward to ¥80 billion ($67 billion), or 38 percent less than the July forecast.

Sony plans to set aside about ¥51 billion to cover the replacement of faulty battery packs used in notebook PCs made by Dell, Apple, Lenovo and others that used Sony's lithium-ion batteries.

Playstation 3 is scheduled to hit stores here in the middle of November, but shipments have been reduced to 1 million units by year's end, half the original plan due to a production glitch in blue lasers for Blu-Ray Disc drives.

Source: EETimes

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