Sony Corporation’s TV division has been in the red for the better part of the decade but the company is now hopeful that it will be profitable this year. Back in March Sony CEO Kazuo Hirai told investors that despite rumors on the contrary the company’s TV division was not up for sale. Instead Sony decided to spin off the division. Sony’s TV business will now become a separate subsidiary of Sony Corp. The newly independent division will be headed by Masahi Imamura.
Imamura told the media today that even if the division falls short of its volume sales target they expect the TV business to move back into the black this financial year. He added that they company would be able to absorb the impact of any fluctuations in emerging market currencies this year.
Sony has forecasted an 18.5 percent growth in TV sales. It expects to sell 16 million units this year as opposed to the 13.5 million units it sold a year ago. Analysts believe this increase is greater than the industry’s average growth forecasts. Imamura remains adamant that this target can be achieved, though pointing out that the division would be able to turn a profit even if the target is not met.
Hirai hasn’t ruled out the possibility of an equity tie-up for the company’s TV business, but for now they’re not doing business under the assumption that a tie-up would happen.
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