Sony doubles its loss forecast

JAPANESE GIANT Sony has more than doubled its annual lost forecast, just a day after announcing its next CEO.

According to Bloomberg, the company blamed a stronger Japanese Yen, cuts in production caused by last year's Thailand floods and the cost of exiting a display-panel venture with Samsung for widening its forecast to 220 billion Yen ($2.9 billion) from 90 billion Yen in November.

Yesterday, Sony announced it had promoted Kazuo Hirai to CEO, replacing Sir Howard Stringer, who will become chairman of the board.

However, on Thursday the company cut sales targets for cameras, PCs and Playstation 3s and admitted its mobile phone arm's performance was worse than expected.

Hirai said in a news conference today that the company remained committed to TVs and will maintain a sales target of 20 million sets.

Hirai will take his position in April. Credited for his work in Sony's Playstation business, Hirai presently serves as Sony's executive deputy president.

Stringer will continue as chairman of Sony until his ascension to the board chairmanship, which will become effective following the annual meeting of shareholders in June, when the current chairman, Yotaro Kobayashi, will retire. Hirai is also expected to be appointed to the board at the June shareholders meeting. µ