Sony aims for 5% operating profit margin

Sony aims to earn a 5 per cent operating profit margin in three years by turning its struggling LCD TV and game operations profitable…

Sony aims to earn a 5 per cent operating profit margin in three years by turning its struggling LCD TV and game operations profitable next year and launching 3D TVs and lithium-ion batteries for electric vehicles.

Sony, which offers Bravia LCD TVs, Cyber-shot digital cameras and PlayStation videogames, said today it aims to launch 3D TVs in 2010 and take a 20 per cent share of the overall LCD TV market worldwide in unit terms in the year starting in April 2012.

"We are a different Sony," Sony chief executive Howard Stringer said, putting forward Sony's target for a 5 per cent operating profit margin and a return on equity of 10 per cent in the business year starting in April 2012.

Sony, which is headed for its second-straight annual loss, shed jobs, closed plants and sold non-core assets this year to improve its cost structure, and investors are now awaiting convincing growth strategy from Sony management.

Sony also said it will make its game operations profitable next year by cutting costs and expanding both hardware and software sales.

Shares in Sony closed down 2.2 per cent ahead of the announcement, underperforming a 1.7 per cent fall in Tokyo's electrical machinery index.