Executives see signs of turnaround as Sony report US$35 million earnings

By IVCPOST Staff Reporter

Aug 02, 2013 09:58 AM EDT

On Thursday, Sony announced that it was weighing hedge fund investor Daniel Loeb's suggestion to spin off a segment of its entertainment unit. However, executives said that their electronics enterprise showed signs of a rebound. They believed that the company's strategy was on track.

The Japanese company said its net income was JPY3.5 billion equivalent to US$35 million in the second quarter following its loss of JPY24.6 billion last year. Its revenue rose by 13% to US$17.3 billion. Sony's results were aided by a weaker yen and an upsurge in the sales of smartphones.

Sony was able to sell 9.6 million units of smartphones compared from last year's 7.4 million. The company added that the average selling prices increased as well, helping its mobile enterprise post a revenue of US$60 million after a loss of US$28.1 million in 2012.

"It's very clear that the company is focused on fixing electronics, and these results show that the strategy seems to be working," Macquarie Securities' analyst, Damian Thong, said.

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