Sony and Panasonic post big profits in H1

TOKYO, Oct 29, (AFP): Two of Japan’s biggest electronics giants booked soaring profits Thursday in a sign that efforts to fix their tattered balance sheets were finally paying off.

Sony kicked off the upbeat news by reporting a six-month net profit of almost $1.0 billion, crediting its PlayStation video game unit and smartphone parts business for a big improvement in its finances.

Shortly after Sony’s announcement, rival Panasonic also said that its fiscal first-half profit jumped, as the firm presses on with a corporate shakeup.

The pair, along with still-struggling it of almost 1.0 billion USD, crediting its PlayStation video game unit and a weak yen for a big improvement in its finances as the company moves past years of losses. (AFP) Sharp, have stumbled in the consumer electronics business that built their global brands, including losing billions of dollars in televisions over the past decade as they faced fierce competition from lowercost rivals from South Korea and Taiwan.

In response, the trio launched wideranging restructurings that have included layoffs and asset sales in a bid to restore their fading glory.

On Thursday, Sony said its net profit came in at 116.0 billion yen ($960 million) in the first half of its fiscal year, reversing a 109.2 billion yen loss a year earlier. It also reversed a year-earlier operating loss, although sales ticked down 0.3 percent to 3.7 trillion yen.

“Sony remains on course to recovery — it’s in the final stages of restructuring,” said Rakuten Securities analyst Yasuo Imanaka.

Panasonic, meanwhile, said its sixmonth net profit soared 37 percent 111.33 billion yen, while sales ticked up 1.0 percent to 3.76 trillion yen, as it focuses on casting off money-losing businesses.

The company has shifted its attention to its lesser-known endeavours, including energy and an auto division that makes various products found in vehicles, from electrical components to car navigation systems.