Massive improvements in operating costs see income jump over 400 per cent

Sony electronics division drives growth

Sony has revealed a massive increase in its operating revenue during the 2007 financial year, boosted largely by improvements in its electronics department.

The Japanese manufacturer saw its operating income hit ¥374.5 billion, up a massive 429.1 per cent on 2006’s figures. It also saw a rise in sales and operating revenue, up 6.9 per cent to ¥8.87 trillion.

Its electronics division, which accounted for the majority of the firm’s growth, saw a rise in sales and operating income of 8.9 per cent reaching ¥6.6 trillion – up from ¥6 trillion in 2006. However, it was the division’s operating income that performed best, seeing a massive jump of 121.8 per cent to ¥335 billion.

Sony has, however, warned that it is expecting a significant slowdown during its 2008 financial year due to continued appreciation of the yen against the US dollar. It has predicted a one per cent increase in sales on 2007’s figures and a 20 per cent increase in operating revenue.

"Although a significant improvement in operating income in operating income is expected for the television business, overall operating income is expected to decrease mainly due to the impact of the appreciation of the yen against the US dollar," the firm said in its annual statement.

The firm also revealed in its breakdown of product sales that it sold 5.8 million Walkman MP3 players, 7.7 million Handycam video cameras, 23.5 million Cybershot digital cameras, 10.6 million Bravia LCD TVs and 5.2 million Vaio PCs.

It has predicted a massive increase in sales of its Bravia range on the back of heavy advertising and falling ASPs, alongside key sales drivers including Euro 2008, the Olympics and the digital switch over in the US, UK and Australia. It is expecting sales to reach 17 million despite decreasing economic certainty.

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