April 10, 2012 07:27 am EDT

Sony revises projections, sees $6.4 billion net loss for 2011

While we wait to hear Kaz Hirai's new plan for Sony, the news is getting worse before it gets better. The company just announced new projections that are more than double the net loss it predicted in February for the fiscal year 2011, to the tune of $6.4 billion. The reason? According to Reuters, it's additional tax expenses that are causing the pain, as Sony says it's "due to the establishment of valuation allowances against certain deferred tax assets, predominantly in the U.S." There is a silver lining to this cloud however, as the company is projecting an operational profit of 180 billion yen ($2.2 billion US) in 2012, compared to a loss of 95 billion yen ($1.16 billion US) last year. There are already predictions that Kaz will announce significant cuts in jobs and bonuses on the 12th, and from the numbers in the PDF linked below you can see why.

Sony revises projections, sees $6.4 billion net loss for 2011 originally appeared on Engadget on Tue, 10 Apr 2012 03:27:00 EDT. Please see our terms for use of feeds.

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Original Link: http://www.engadget.com/2012/04/10/sony-revises-projections-sees-6-4-billion-net-loss-for-2011/

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