Sony's (SNE) transition into a high-end consumer electronics group hasn't wavered even as earnings at the Japanese maker of PlayStation and Xperia smartphones continues to suffer from a stronger yen.
The Tokyo-based consumer electronics group reported an 86% second-quarter slump Tuesday, but nonetheless repeated its "shifting focus to high value-added products" message across three of its business lines that have suffered declines.
Sony reported a second-quarter net of ¥4.8 billion ($46 million) on sales of ¥1.69 trillion after markets closed in Tokyo, each down 85.6% and 10.8% from a year earlier. Operating profit dropped 48% to ¥45.7 billion.
The company had warned Monday it would be booking a writedown and tax expenses from the sale of its battery business to Murata Manufacturing, but also attributed a large part of the weak result to yen appreciation -- which is up 16% against the U.S. dollar from last year -- and said Playstation 4 performance was hurt by price revisions.
Sony saw revenue decline in seven of its 10 segments in the second quarter, with only its pictures, music, and financial services businesses seeing expansion.
Mobile communications, imaging products and solutions, and home entertainment and sound segments were standouts to the downside, but Sony nonetheless noted it had improved its product mix by shifting its focus to high value-added products.
In the mobile communications segment, a 39.6% revenue drop was partially offset by "concentration on high value-added models." The message was similar for the imaging products and solutions segment, which reported a 25.2% sales decline.