Sony Swings to First Annual Loss in 14 Years

Global downturn, strong yen reverse earlier expectations
By Jason Farago,  Newser Staff
Posted Jan 22, 2009 6:25 AM CST
Sony CEO Howard Stringer in Tokyo today. He vowed to turn around struggling Sony Thursday with pay cuts, job reductions and trendier gadgets to trim costs and return to profit.   (AP Photo/Koji Sasahara)
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(Newser) – Sony announced today that it would go down to its first annual loss in 14 years, after having forecast just months ago that it would turn a profit. The Japanese electronics giant said it expected to lose $1.7 billion, the result of declining demand from the global recession. The BBC reports that Sony has also been hit hard by the strong yen: 80% of its sales come from overseas, and currently the Japanese currency is its highest against the dollar in more than 13 years.