Sony Returns to Profit, Lifting Shares - TheStreet

Sony Returns to Profit, Lifting Shares

The stock is gaining nearly 8%.
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Shares of

Sony

(SNE) - Get Report

were surging Wednesday after the company posted a profit in the most recent fourth quarter, reversing the loss it recorded in the previous year.

The electronics seller said sales for the fourth quarter ended March 31 fell 6.5%, but were essentially flat when changes in exchange rates were taken out, totaling 1.95 trillion yen, or $19.53 billion.

Sony had an operating loss of 4.7 billion yen ($47 million), down from the loss of 108.7 billion yen in the prior-year quarter. Fourth-quarter net income was 29 billion yen, compared with the 67.6 billion yen loss a year ago.

For the fiscal year, Sony had revenue of about 8.87 trillion yen, or $88.71 billion, an increase of 6.9%. Net income nearly tripled to 369.4 billion yen, or $3.69 billion.

Sony said full-year sales for the electronics segment were up 8.9% from fiscal 2007, achieving a new fiscal-year record, due to the increase in sales of products such as Bravia LCD televisions, Vaio PCs and Cyber-shot digital cameras. In the game segment, sales climbed 26.3%, primarily as a result of significantly higher sales of PlayStation 3 consoles.

Looking to fiscal 2009, Sony projected revenue of about 9 trillion yen, up 1% from fiscal 2008, and net income of 290 billion yen, a decrease of 22%. The forecast assumes exchange rates of about 100 yen to the dollar and 158 yen to the euro.

Additionally, Sony said it plans to raise its regular annual dividend by 15 yen to 40 yen, and to issue a special cash dividend of 10 yen per share.

Sony's shares were gaining 7.9% to $49.69 in New York trading Wednesday, and the advance came as technology overall was having a winning session.

Nintendo

(NTDOY)

, who makes a competing system to the PlayStation, wasn't yet trading. However,

Microsoft

(MSFT) - Get Report

, the seller of the Xbox, was adding 1%.

Hewlett-Packard

(HPQ) - Get Report

,

Apple

(AAPL) - Get Report

and

Dell

(DELL) - Get Report

, whose computers compete with the Vaio, were also higher.

This article was written by a staff member of TheStreet.com.