Sony released the 2013 report on Thursday boasting its first annual profit in five years. The company has been in the red since 2008, but the past efforts have finally started to pay off, according to the New York Times.
Samsung and other major manufacturers have outrun Sony in the past years. The company stopped making profit in 2008 and has been struggling ever since to keep its head above the water. The Tokyo-based company was forced to make a lot of compromises in order to cover the debts and avoid getting bankrupt. They have focused primarily on dissolving unprofitable businesses, such as the flat-panel television manufacturing ventures with Sharp and Samsung and the chemical products business. Sony even sold its New York-based headquarters for $1.1 billion; thus, managing to recover some of its financial losses.
After five years in the red, the company revealed on Thursday that 2012 was the first year to register profit. The progress is a sign of recovery, but Sony is still aware that many more measures need to be adopted in the future to help improve its ailing electronic business. The net profit declared on Thursday amounted to ¥43.0 billion, or $458 million, a significant recovery considering that the company lost ¥456.7 billion in 2011. The profit is partially due to the weakening yen, but also to the increasing sales that Sony has had. The Japanese manufacturer declared that sales registered a 4.7-percent growth equaling ¥6.8 trillion.
The company has positive expectations for the current fiscal year. Spokespersons have stated that Sony is expecting a 16 percent growth until the end of the current fiscal year which is due to take place in March 2014.
Kazuo Hirai, who has been appointed as a chief executive in 2012, can concentrate on the measures that need to be implemented in order to revive the company’s electronics division. Although still far behind its American competitor, Apple and its Asian rival, Samsung, Sony has launched several products that have captured consumers’ interest. Xperia Z smartphone and PlayStation 4 are the two devices that Sony is counting on to attract buyers.