Sony Q1 Profit Soars; Maintains FY Earnings View, Lifts Sales Forecast

Japanese consumer electronics maker Sony Corp. (SON.L,SNE) reported Tuesday a significant increase in its first quarter profit, reflecting a sale gain, the absence of prior year charge as well as higher sales. Looking ahead, for fiscal 2018, the company maintained earnings forecast, while listed sales view.

For the first quarter, net income attributable to stockholders climbed to 80.9 billion yen or $722 million from last year’s 21.2 billion yen. Earnings per share grew to 62.70 yen or $0.56 from 16.44 yen last year.

The latest results included a 27.5 billion yen gain from the sale of the entire equity interest in Sony Electronics Huanan Co., Ltd., while prior year results included a 20.3 billion yen impairment charge.

Operating income was 157.6 billion yen or $1.41 billion, significantly higher than 56.2 billion yen a year ago. The result reflected improvements of operating results in the Semiconductors and Imaging Products & Solutions segments, partially offset by weak income in the Game & Network Services segment.

Sales and operating revenues climbed 15.2 percent to 1.86 trillion yen or $16.59 billion from prior year’s 1.61 trillion yen. This significant increase was primarily due to increases in Financial Services and Semiconductors segment sales.

On a constant currency basis, sales increased 14 percent.

Mobile Communications sales were essentially flat due to a change in product mix, partially offset by an increase in unit sales, both in smartphones. All other segments posted higher sales in the quarter. Game & Network Services sales increased 5.4 percent, Imaging Products & Solutions sales climbed 27.3 percent and Semiconductors sales increased 41.4 percent.

Looking ahead, for fiscal 2018, the company continues to expect attributable net income of 255 billion yen, and operating income of 500 billion yen.

However, consolidated sales for the year are expected to be higher than the previous view primarily due to the impact of foreign exchange rates. Sales and operating revenue are now expected to grow 9.2 percent from last year to 8.3 trillion yen, higher than previous forecast of a growth of 5.2 percent to 8 trillion yen.

The company lifted the sales forecast for Game & Network Services, Imaging Products & Solutions and Home Entertainment & Sound segments. For Semiconductors, sales are expected to be lower than the earlier forecast primarily due to lower-than-expected image sensor unit sales for mobile products.

In fiscal 2017, attributable net income…

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