Sony is today warning of a 38 per cent reduction in its forecast profits for the year ending March 31, 2007.
This is mainly as a result of having to recall millions of laptop batteries that might cause fires and of lower-than-expected income from PlayStation 3 and PlayStation Portable.
Net income for the year is now expected to be 80 billion yen (£361 million/US$676 million), compared to the 130 billion yen (£586 million/US$1.1 billion) forecast on July 27.
This fall is greater than many analysts have been suggesting but the revision, in our view, may still turn out to be overly optimistic.