Sony cuts full-year operating income after impairment charge
Sony has warned that its full-year operating profit was 9.4 per cent lower than previously estimated after a hefty impairment charge.
Operating profits were ¥209bn (£1.3bn) for the 12 months to the end of March. They had been expected to come in at ¥320bn.
The announcement came as Sony announced an impairment charge in operating income of ¥59.6bn related to "long-lived assets in the devices segment".
Read more: Sony is in line for its biggest profit in eight years
However, net income was reported at ¥145bn, up 3.6 per cent from what was forecast.
Sony said it had expected weaker demand for components used in smartphones and cameras.
Read more: Sony agrees $750m deal with Michael Jackson's estate
Given the decrease in projected future demand, Sony performed an impairment analysis during the quarter ended 31 March, and concluded that "future cash flows would not be sufficient to recover the entire carrying amount of the long-lived assets, leading to the recording of an impairment charge of ¥59.6bn".
The company added that this month's earthquake had no impact on the financial year ending March 2016, but that it's assessing the impact on the financial year ending March 2017.
The revision comes after the company reported strong results in January due to revenues from PlayStation Four and Spectre.