Sony Corp’s profits for the first quarter were down 55% year-on-year but still better than analysts had predicted thanks to strong sales of Vaio notebook computers and some digital consumer electronics products like camcorders. The strong yen coupled with price wars in key electronics markets were responsible for the bottom line battering. Executive vice-president Masayoshi Morimoto said its consolidated operating profit, calculated under US accounting rules, fell to 42.24bn yen ($361m) in the three-month period, the first quarter of the business year. On an after-tax net basis, its first-quarter consolidated profit was 18.43bn yen ($158m). Sony relies on overseas markets for 70% of its sales, and Morimoto said without the yen’s rise profit would have fallen by a much more modest 17%. He said much of the drop was otherwise due to US price wars in key product areas including microchips and computer displays.
