Sony falls below 1,000 yen for first time since 1980

Sony shares tumbled below 1,000 yen for the first time since 1980 as the Tokyo stock market plunged Monday following a dismal performance from Wall Street and amid global economic concerns.

The entertainment and electronics giant dropped 1.67 percent to close at 996 yen as the benchmark Nikkei index lost 1.71 percent on the Tokyo Stock Exchange on Monday.

Dealers said Sony last traded below the psychologically important 1,000 yen level in August 1980 around a year after its landmark "Walkman" portable music player was released.

The total market value of the company is now around one trillion yen ($13 billion), compared with 11 trillion yen in 2000, there year the PlayStation was released and shares hit a peak of 16,950 yen, dealers and news reports said.

Sony posted a record full-year loss of 456.66 billion yen ($5.8 billion) for the year to March 2012 as it struggled with losses in its television division.

Japanese companies have blamed tough competition from rivals including South Korea's Samsung, falling prices, slow demand, the impact of severe flooding in Thailand last year, and the high yen for their travails.

The stronger yen hits Japanese exporters by making their products more expensive overseas, while eroding the value of foreign-earned profits.

Last month Sony said it would withdraw from a liquid crystal display joint venture with its domestic rival Sharp, which has announced an $808 million link-up with Taiwan's Hon Hai Precision.

In April, Sony said it would cut about 10,000 jobs and spend nearly $1 billion on an overhaul that its new chief executive Kazuo Hirai described as "urgent".

Sony has vowed it will swing back into the black as it embarks on the restructuring plan. The firm now forecasts a net profit of 30 billion yen in the current fiscal year to March 2013 on sales of 7.4 trillion yen.

Editor’s note:Yahoo Philippines encourages responsible comments that add dimension to the discussion. No bashing or hate speech, please. You can express your opinion without slamming others or making derogatory remarks.

  • Fight vs online libel goes to the UNHCR Ederic Eder, Yahoo! Southeast Asia - The Inbox
    Fight vs online libel goes to the UNHCR

    Commentary By Ellen T. Tordesillas Last Tuesday, while in Baguio City for their summer session, the Supreme Court denied all the Motions for Reconsideration on Online Libel which it upheld in its Feb. 18, 2014 decision. It will be recalled … Continue reading → …

  • Book chronicles efforts for PWD-friendly polls VERA Files - The Inbox
    Book chronicles efforts for PWD-friendly polls

    By Melissa Luz Lopez, VERA Files A lot have been done but much still need to be done for a hassle-free  participation of  Persons with Disabilities in elections,according to a book published by The Asia Foundation (TAF) and supported by … Continue reading → …

  • The other side of Palawan Ellen Tordesillas, Contributor - The Inbox
    The other side of Palawan

    By Ellen T. Tordesillas Mention Palawan and what comes to mind are Underground River and El Nido in the northern side of this richly-blessed province from its capital, Puerto Princesa. Three weeks ago, we went to the southern side- in … Continue reading → …

POLL
Loading...
Poll Choice Options