Battery recall forces Sony ¥50 billion profit hit

RECALLS of batteries from Sony and continued losses from its gaming division have forced the firm to issue a profit warning for its financial year.

According to a report in the Wall Street Journal, it will lower the operating profit for the group from ¥130 billion to ¥50 billion, although revenues for the year will stay the same.

Its gaming business and failure to ship the Playstation 3 isn't helping matters at the troubled firm.

The battery problem will cause Sony to take a charge of around ¥50 billion in its Q2, following a series of recalls which started with a Dell notebook showing clear signs of incandescence, first reported in the INQ last June. Numerous other notebook makers, including Apple and Lenovo, followed suit after the four million plus Dell recall.

The Journal reports that Toshiba and others may seek compensation from Sony, so the financial damage may continue.

L'INQ
Wall Street Journal