Sony shares drop 14 per cent
Trading on Tokyo Stock Exchange reacts to slashed earnings forecast
Sony's shares fell by 14 per cent in Tokyo trading after the company cut its earnings forecast by 57 per cent.
The company's share value dropped to close at JPY 1,972 (USD 21) on the Tokyo Stock Exchange. Yesterday, Sony slashed its earnings forecast due to flagging sales and the impact that the strengthening yen has had on its export business.
"The bad news about Sony hasn't run out yet,'' Seiichiro Iwamoto, of Mizuho Asset Management, told Bloomberg. "Given the weakening euro and possible wider losses on shareholdings, I wouldn't be surprised even if operating profit falls to JPY 100 billion (USD 1 billion) this year.''