Friday, 12 July 2013

Corporate information

Kazuo Hirai, Sony's president and chief executive officer, holding Sony's PlayStation Vita (2011) Finances

Sony is one of Japan's largest corporations by revenue. It had revenues of ¥6.493 trillion in 2012. It also maintains large reserves of cash, with ¥895 billion on hand as of 2012. In May 2012, Sony shares were valued at about $15 billion.

The company was immensely profitable throughout the 1990s and early 2000s, in part because of the success of its new PlayStation line. The company encountered financial difficulty in the mid- to late-2000s due to a number of factors: the global financial crisis, increased competition for PlayStation, and the Japanese earthquake. The company faced three consecutive years of losses leading up to 2011. While noting the negative effects of intervening circumstances such as natural disasters and fluctuating currency exchange rates, the Financial Times criticized the company for its "lack of resilience" and "inability to gauge the economy." The newspaper voiced skepticism about Sony's revitalization efforts, given a lack of tangible results.

In September 2000 Sony had a market capitalization of $100 billion; but by December 2011 it had plunged to $18 billion, reflecting falling prospects for Sony but also reflecting grossly inflated share prices of the '' years. Net worth, as measured by stockholder equity, has steadily grown from $17.9 billion in March 2002 to $35.6 billion through December 2011. Earnings yield (inverse of the price to earnings ratio) has never been more than 5% and usually much less; thus Sony has always traded in over-priced ranges with the exception of the 2009 market bottom.

In April 2012, Sony announced that it would reduce its workforce by 10,000 (6% of its employee base) as part of CEO Hirai's effort to get the company back into the green. This came after a loss of 520 billion yen (roughly US$6.36 billion) for fiscal 2012, the worst since the company was founded. Accumulation loss for the past four years was 919.32 billion-yen. Sony plans to increase its marketing expenses by 30% in 2012. 1,000 of the jobs cut come from the company's mobile phone unit's workforce. 700 jobs will be cut in the 2012-2013 fiscal year and the remaining 300 in the following fiscal year.

Sony's 2009 sales and distribution by geographical region Geographic region Total sales (yen in millions) Japan 1,873,219 United States 2,512,345 Europe 2,307,658 Other Areas 2,041,270

On 9 December 2008, Sony Corporation announced that it would be cutting 8,000 jobs, dropping 8,000 contractors and reducing its global manufacturing sites by 10% to save $1.1 billion per year.

In January 2013, Sony announced it was selling its US headquarters building for $1.1 billion to a consortium led by real estate developer The Chetrit Group.

Environmental record

In November 2011, Sony was ranked 9th (jointly with Panasonic) in Greenpeace's Guide to Greener Electronics. This chart grades major electronics companies on their environmental work. The company scored 3.6/10, incurring a penalty point for comments it has made in opposition to energy efficiency standards in California. It also risks a further penalty point in future editions for being a member of trade associations that have commented against energy efficiency standards. Together with Philips, Sony receives the highest score for energy policy advocacy after calling on the EU to adopt an unconditional 30% reduction target for greenhouse gas emissions by 2020. Meanwhile, it receives full marks for the efficiency of its products. In 2007, Sony ranked 14th on the Greenpeace guide. Sony fell from its earlier 11th place ranking due to Greenpeace's claims that Sony had double standards in their waste policies.

Since 1976, Sony has had an Environmental Conference. Sony's policies address their effects on global warming, the environment, and resources. They are taking steps to reduce the amount of greenhouse gases that they put out as well as regulating the products they get from their suppliers in a process that they call "green procurement". Sony has said that they have signed on to have about 75 percent of their Sony Building running on geothermal power. The "Sony Take Back Recycling Program" allow consumers to recycle the electronics products that they buy from Sony by taking them to eCycle (Recycling) drop-off points around the U.S. The company has also developed a biobattery that runs on sugars and carbohydrates that works similarly to the way living creatures work. This is the most powerful small biobattery to date.

In 2000, Sony faced criticism for a document entitled "NGO Strategy" that was leaked to the press. The document involved the company's surveillance of environmental activists in an attempt to plan how to counter their movements. It specifically mentioned environmental groups that were trying to pass laws that held electronics-producing companies responsible for the clean up of the toxic chemicals contained in their merchandise.

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