Japan Retail Sales Fall, Sony Q3 Loss

Darlington Musarurwa
29 Jan, 2009
New York City

December retail sales in Japan fell 2.7% as consumer keep a tight grip on spending on worrying job losses. The recent declines in energy costs have still not been passed on to the consumers. Sony reported operating loss in the third quarter of 18 billion and estimated full year loss of 150 billlion.

[R]5:00AM New York, 7:00PM Tokyo – December retail sales in Japan fall 2.7%. Sony Corp. records operating loss of 18 billion yen in Q3.[/R]

The benchmark index in Tokyo trading edged higher, after the U.S. House of Representatives passed the $825 billion stimulus package yesterday.

A senior aide in the Obama administration was also quoted as saying plans to form a bad bank to absorb toxic assets in the financial services sector will be unveiled next week.

In Tokyo trading Nikkei 225 index gained 0.6% or 45.22 to 8,106.29, and the broader Topix Index increased 1.8% or 14.14 to 818.47.

In the first section of the Tokyo Stock Exchange 21 billion shares worth 1.5 trillion yen were changed and in the second section 227 million shares worth 2 billion yen changed hands.

Of the Nikkei 225 index stocks, 120 increased, 92 declined, and 13 were unchanged. CSK Holdings led gainers in the index shares with a rise of 9.6% followed by Citizen Holdings increasing 8.1%.

U.S. House Passes $825 billion Stimulus Plan

U.S. House of Representatives yesterday passed the $825 billion stimulus plan proposed by the Obama administration to prevent a deepening global economic recession by a 244 to 188 vote.

Analysts say the package may exceed $900 billion once it is reshaped in the Senate, where Republicans members are advocating for more tax cuts.

Japan''s Retail Sales Drop 2.7% in December

Japan''s Ministry of Economy, Trade and Industry reported today that the country''s retail sales declined 2.7% in December, falling the most in four years. Falling consumer confidence and worries of job losses are contributing to the retail sales weakness.

Gainers & Losers

CSK Holdings led gainers in the Nikkei 225 index shares with a rise of 9.6% followed by increases in Citizen Holdings of 8.1%, in Tokyo Electron of 7.9%, in Asahi Glass of 6.1%, and Taiyo Yuden of 6.1%.

Yokogawa Electric led decliners in the Nikkei 225 index shares with a fall of 8.2% followed by losses of Nippon Telegraph of 5.3%, in Osaka Gas Co. of 4.9%, in Fuji Electric House of 4.4%, and Yahoo Japan Corp. of 4.2%.

Other utilities fell. Tokyo Electric tumbled 3.3% and Kansai Electric plunged 3.3%.

Sony''s Operating Loss Climbs to 18 billion Yen

Sony Corp. third quarter operating loss fell 254.2 billion yen to $18 billion yen.

Operating income fell due to a 127 billion yen impact from the appreciation of the yen, 57.7 billion yen from the deterioration in results at equity affiliates, and a 33.2 billion yen increase in operating loss in the financial services segment.

In the electronics segment, the company''s performance was weighed down by deterioration in equity in net income of affiliates relating to Sony Ericsson and slowing sales.

The financial services segment dropped on increased losses at Sony Life on the losses in its holdings. Financial service revenue slid 24.1% to 103.1 billion yen in the review period.

According to the report, sales and operating income at the electronics segment declined 29.3% to 1.4 trillion yen from 2 trillion yen a year ago. Sales of Blue-ray disc players however increased.

Sales in the gaming segment slipped 32.2% to 393.8 billion yen, while in the pictures segment sales and operating income declined 21.8% to 175.1 billion yen.

Sony forecasts that annual revenues in the full-year ending March 31 will tumble 13% to 7.7 trillion yen and estimated a net loss of 150 billion yen.