Sony forecasts annual net loss of $2.9 billion, first in 14 years

"The massive economic upheaval being experienced across the globe is sparing no one in the consumer electronics world," Stringer was quoted as saying by AP at a news conference.  Â

Sony said it would post a record $2.9 billion annual operating loss and unveiled fresh restructuring steps to revive its ailing electronics operations.

The operating loss will be Sony's first in 14 years, underscoring deepening troubles for a company that has fallen behind Apple Inc's iPod in portable music, Nintendo Co in videogames, and is losing money on flat TVs.

"Sony needs further restructuring, not just cost-cutting but a revamping of its business operations," Reuters quoted said Naoki Fujiwara, a fund manager at Shinkin Asset Management.

Sony said it now expects an operating loss of 260 billion yen ($2.9 billion) for the year to March, down from an earlier projection for a 200 billion yen profit and far worse than earlier media estimates of a loss of 100 billion yen.

The maker of Bravia LCD TVs and PlayStation game consoles said it would respond by accelerating restructuring, more than doubling a cost-cutting target for the year to March 2010 to 250 billion yen.

Sony said it would end TV production and design operations at one plant in Japan and consolidate those operations into another factory in the country. It plans to cut headcount by 30 percent in operations related to TV design worldwide.

Other measures include consolidation of resources for batteries and small and mid-size liquid crystal display (LCD) panels, and pay cuts for directors and managers.

It expects restructuring charges to total 170 billion yen through the year to March 2010.

Last month Sony outlined a restructuring plan that included curbing investment, closing five to six plants and cutting a total of 16,000 regular and contract jobs globally to save 100 billion yen a year in costs.