Sony Lowers Profit Forecast on Electronics Earnings

Bloomberg Reports: "Sony Corp. said profit will fall more than previously forecast on lower-than-anticipated earnings from its handset venture with Ericsson AB and a slide in electronics prices that caused first-quarter earnings to miss estimates.

Sony, the world's second-largest maker of consumer electronics, tumbled to a five-year low in Frankfurt trading after the Tokyo-based company said net income dropped 47 percent to 35 billion yen ($326 million) in the quarter ended June 30. Profit was 41 percent lower than the median estimate of five analysts surveyed by Bloomberg.

Chief Executive Officer Howard Stringer delivered the electronics division's biggest profit drop in two years and the movie operation's first loss in seven quarters. The company projected a ''cautious'' outlook on demand for Bravia televisions and Cyber-shot cameras as economic growth in the U.S. and Europe slows and demand starts to falter in China."

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