Sony Corp. took it on the chin in the fiscal third quarter, laid low by a powerful yen and a dismal market for consumer electronics.
Unfortunately, it could take little solace from its Columbia and TriStar studios or Sony Music.
The giant Tokyo-based conglomerate saw its net income plummet 72.1% to $ 217 million (53 cents per depositary share). Revenues were off 3.8% to $ 8.65 billion.
Sony cited continued gloomy economic conditions in its home market and Europe , which depressed consumer electronics sales. Another factor was a 5.5% decline of the U.S. dollar against the Japanese yen vs. the same period last year.
Filmed entertainment, which consists of the two U.S. studios, saw a 11.8% decline in revenues to $ 794 million, compared with the third quarter last year.
One problem was repeating the performance of an exceptionally strong third quarter last year. With few pictures from TriStar and only "Bram Stoker's Dracula" and a late start for "A Few Good Men" to lead Columbia in the domestic market, revenues were lower when compared with a powerhouse holiday slate of "Hook,""The Prince of Tides" and "Bugsy," which dominated the fall of 1991.
Also missing was the tremendous boost Sony Pictures received from the syndication sale of 100 episodes of "Married ... With Children" and "Who's the Boss?" This was not to be repeated this quarter.
As a result, industry estimates put operating income for the studio in the $ 60 million-$ 70 million range, comparably flat based on tighter cost controls vs. last year.
Sony Music Group was down 4% to $ 1.1 billion. Last year, the quarter was monopolized by Michael Jackson's "Dangerous." Based on industry estimates, the music group's operating earnings would sit around $ 140 million.
Video equipment slipped 12% to $ 1.8 billion. Audio equipment sales were down by 6% to $ 2.15 billion from the third quarter last year.
Gaining ground was the television products group, which added 10.8% in sales to $ 1.5 billion.
In a bleak forecast, Sony said it expects its business environment to "become even more severe due to the further slowdown of the Japanese and European economies and the advance in the value of the yen."
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