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Hiroki Totoki, who has vowed to turn the unit profitable in the
year ending March 2016, told investors about his plans to
counter foreign exchange fluctuations at a briefing in Tokyo on
Wednesday. Close to eight-year highs versus the yen, the
dollar's surge causes problems for Sony's mobile business
because it raises the cost of raw materials and parts.
"We're seeing a strengthening in the dollar under way. But
despite the impact of exchange rates, we would like to limit
losses through pricing and lower operating expenses," said
Totoki. "We want to be able to act as early as possible when we
sense a change, by changing prices, or altering the product
portfolio."
Totoki's efforts to fix problems at the long-struggling
business, mainly by cutting costs and winding down in markets
where Sony sees little chance of being profitable, are part of a
lengthy restructuring effort across the whole of the company
that is now beginning to bear fruit.
After years of losses, the company expects a net profit of 140
billion yen ($1.14 billion) this year.
Sony has struggled in recent years with weak sales in areas such
as smartphones and TVs amid tough competition from cheaper Asian
rivals, as well as industry leaders like Apple Inc and Samsung
Electronics.
Heavy losses at the mobile division were blamed for the group's
net loss in the fiscal year ended March 2914. For the current
year, the mobile business expects an operating loss of 39
billion yen, while the company as a whole forecasts an operating
profit of 320 billion yen.
(Reporting by Ritsuko Ando; Editing by Kenneth Maxwell)
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