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Sony shares drop steeply on loss warning

Published on May 15, 2014 10:40 AM

TOKYO (AFP) - Sony shares dropped nearly 7 per cent Thursday morning as investors reacted to a warning from the Japanese electronics giant that it would remain in the red for another year after it booked a US$1.26 billion (S$1.58 billion) annual loss.

In late morning trade, the Tokyo-listed stock fell to 1,682 yen, down 6.81 per cent, on the back of Wednesday's announcement, which aggravated concerns about a turnaround in Sony's hard-hit consumer electronics division.

Sony announced just after markets closed on Wednesday that costs tied to its exit from the personal computer business - part of a wider restructuring - were largely to blame for its woeful bottom line.

Sony posted a full-year net loss of 128.37 billion yen and said it expected to lose 50 billion yen in the current fiscal year to March 2015, despite seeing losses narrow in its embattled television business.

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