Sony's profits dive as stores, cinemas close during pandemic

Full Screen
1 / 2

Copyright 2020 The Associated Press. All rights reserved.

FILE - In this May 22, 2013, file photo, Sony's logo is seen outside the company's headquarters in Tokyo. Japanese electronics and entertainment company Sony Corp. reported Wednesday that its quarterly profit tumbled as the coronavirus pandemic delayed music and movie releases and disrupted product supply chains. (AP Photo/Itsuo Inouye, File)

TOKYO – Japanese electronics and entertainment company Sony Corp. reported Wednesday that its quarterly profit tumbled as the coronavirus pandemic delayed music and movie releases and disrupted product supply chains.

Tokyo-based Sony's profit in January-March crashed 86% to 12.6 billion yen ($118 million), a fraction of the 87.9 billion yen earned a year ago.

The spread of COVID-19 has crimped consumer spending, shut movie theaters, canceled events and sent share prices falling — all damaging for a company with sprawling businesses like Sony.

Quarterly sales and operating revenue fell a combined 18% to 1.7 trillion yen ($16 billion).

The company did not give forecasts for the fiscal year through March 2021, citing uncertainties due to the pandemic. It said projections will be released as soon as possible.

Sony said its electronics and financial services businesses especially suffered.

Consumer demand declined, especially in regions where lockdowns closed retailers. Shutdowns of factories in China and Malaysia also hurt the company's electronics operations.

In financial services, the value of Sony's securities holdings slipped as market conditions worsened, and insurance policy sales dropped.