Sony to slow, analyst warns

Article Abstract:

Sony Corp's stellar growth is predicted to slow because of the depreciation of Asian currencies and growth limits, according to Kimihide Takano, an analyst with Dresdner Kleinwort Benson (Asia) Ltd in Tokyo, Japan. Takano suggested to his clients to sell their shares soon. Nonetheless, Goldman, Sachs & Co includes Sony shares in its so-called global priority list. Sony claimed it has largely protected itself from currency falls by manufacturing numerous goods in the markets where they are sold. Moreover, Sony contends it can count on its video-game business and the licensing of film and TV-show rights to generate increased revenue.

Electronics, Securities

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Weak yen helps out Sony; firm posts record earnings on surge in sales

Article Abstract:

Sony Corp. posted record earnings for the year ended March 31, 1997, due to increased sales and the Japanese yen's depreciation against the dollar. The Japanese electronics company earned a total of $2.5 bil for the year, far exceeding the previous year's pretax profit by 43.67 billion yen. The yen's15% slide against the dollar made Sony's export sales more profitable. A stronger yen would have diminished Sony's operating profit, which went up by 57%, by 6.9%.

Household audio and video equipment, Consumer Electronics, Audio and Video Equipment Manufacturing, Misc. Electrical Equipment & Supplies, Electrical & Electronics NEC, Finance, Electric equipment

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Matsushita's pullout from Hollywood will sharpen its focus on core business

Article Abstract:

Matsushita Electric Industrial Company Ltd. has decided to sell its 80% stake in MCA Inc. to Seagram Company Ltd. for an estimated $5.6 million. The divestment ends Matsushita's four-year attempt to synergize electronics hardware and software with the multimedia business. Despite losing significant sums in the venture, Matsushita's decision to sell could prove beneficial since it forces the company to focus on its core electronics business.

Motion picture & video production, Motion Picture Production, Motion Picture and Video Production, Electronic Components, Mergers, acquisitions and divestments, Motion picture industry, Movie industry, Electronic components industry, Movie production, Seagram Company Ltd., Matsushita Electric Industrial Company Ltd., MCA Inc. (Universal City, California)

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