Massive rise in profits at Sony

IN a surprise turn of fortunes, electronics giant Sony saw net profit surge to 23.3bn yen (£114m) for the quarter to June.

A year ago, behind in the key flatscreen sector, the company earned just 1.1bn yen.

However, with the result boosted by a weak yen which lifted overseas sales amid weak consumer demand in Japan, Sony warned that it was not out of the woods just yet.

'Profits in the first quarter of the fiscal year exceeded expectations. Nonetheless, because we are cautious about the future operating environment, we have not revised our forecast,' the company said in a statement.

The caution was underlined by an operating profit at Sony's electronics business down 50%.

Much of the improvment was thanks to Sony Ericsson, which contributed 5.8bn yen to Sony's consolidated earnings, reversing a 5.8bn yen loss for the same period last year.

The company reiterated its 100bn yen full-year profit outlook. The result was on the back of a 10.4bn yen net profit in its financial services unit and a 5.8bn yen contribution from mobile phones.

But the movie division and games sectors both continued to disappoint, each posting a 1.1bn yen loss.