Sony slashes annual profit forecast as Yen strengthens

Sony Corp. have slashed their annual profit forecast by 38 percent, the world’s second- largest maker of consumer electronics said that a stronger Yen and reduced value of their stocks were to blame.

Sony now forecast that their net for the year ending will now be 150 billion yen ($1.5 billion), which is down from their original forecast of 240 billion yen, which Sony forecast in July. It seems that as the Yen is now the best performing major currency this year, it has had an effect on sales of their Sony Cyber-shot digital cameras, as well as their BRAVIA televisions.

Things are set to get a lot tougher for Sony as demand for consumer electronics is slowing down, as we head in to a global recession. If the Yen keep getting stronger, then this will squeeze Sony’s operating profit.

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