Things just keep getting worse for Sony. After taking a hit from the devastating earthquakes in Japan and recent hacking attacks on its PlayStation network, the company is now announcing that it expects to post a $3.2 billion net loss for the year to write off on tax credits, reports The New York Times. The net loss would be Sony's biggest since 1995 and its second largest ever.
The company stuck with its previous forecast of an operating profit of 200 billion yen, which it had estimated even before the disaster in Japan this past March. Most analysts seem to be on board with this number. Sony estimated the impact of the earthquake in the current year at 150 billion yen at the operating level. Meanwhile, the company estimated "known costs" related to PlayStation network attacks at 14 billion yen and is planning to fully restore the networks by the end of May.
Things are looking a bit brighter for the upcoming year, however, and Sony is hoping for a clean slate. It expects sales to rise this year and forecasts a net profit. “Probably the company is expecting the global economy to recover during the second half of the year. Maybe this perception could be a bit optimistic, but we still have to wait and see,” said Mitsushige Akino, chief fund manager at Ichiyoshi Investment Management. Sony is due to announce its full-year earnings on Thursday.