Japanese electronics maker Sony Corp reported on Thursday that its operating profit more than quadrupled to $2.70 billion for fiscal 2015. It is the biggest annual operating profit the company has posted since 2007.
The profits, riding on cost cuts in its smartphone business and brisk demand for PlayStation 4 videogames, are roughly in line with the firm’s forecast announced earlier this month. Over the past two years, the firm has been shifting attention to higher-margin products such as sensors from consumer electronics such as televisions and mobile phones, under an overhaul led by Chief Financial Officer Kenichiro Yoshida. The jump in profit indicates that the restructuring is paying off after years of losses.
However, Sony has reported an annual loss in its image sensors business. This has raised doubts that the resurgence of the firm in recent years might finally be losing momentum. The devices business, including image sensors which have been the centerpiece of its recovery, swung to a loss of 29 billion yen from a profit of 89 billion yen the previous year.
Sony estimated on Thursday that the shutdown in production due to the earthquakes could cause “major losses”. However, it did not issue any earnings guidance for this business year as it continues to assess the impact of earthquakes this month that halted production at its image sensor plant in southern Japan. It said it expected production to resume around the end of May.
Yoshida has warned at the news conference that quake-related damage could exceed 20 billion yen, the upper limit of its insurance coverage.