Sony Slips on Warning

Shares of Sony (SNE Quote) fell on Thursday after the company warned that it would post worse-than-expected revenue and operating income in its current fiscal year.

The electronics giant now expects to post 110 billion yen ($1.06 billion) in operating income on 7.15 trillion yen in sales, compared with a previous forecast for operating income of 160 billion yen on 7.35 trillion yen in sales. The company attributed the shortfalls to falling prices on video equipment, including DVD recorders and televisions; decreased demand for its semiconductors; and disappointing sales of its portable audio products.

That disappointing outlook overshadowed the company's prediction that its net income would actually come in higher than expected. Sony now expects to post 150 billion yen in income this fiscal year, which ends in March, thanks to an accounting change related to its allotment for taxes. ...