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Battery recall costs Sony $430 million

Posted on Saturday, October 21 2006 @ 06:27:00 CEST by

Sony cut its profit outlook by 62% this week:
The revision follows a series of setbacks for the electronics giant, including recalls of about 8 million Sony-made PC batteries by major computer makers and a delay in the European launch of its upcoming video game console, PlayStation 3.

Sony said it will set aside 51 billion yen ($429.1 million) for costs related to the battery recalls, which it would book in the second quarter ended September.

Sony cut its operating profit target for the year to March to 50 billion yen from its July estimate of 130 billion yen. That compares with a consensus of a 160.9 billion yen in a poll of 20 analysts by Reuters Estimates.
More details over at CNET.



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