Jan. 13 (Bloomberg) -- Sony Corp. may report its first operating loss in 14 years because of falling sales of televisions and other electronics in North America and Europe, the Nikkei newspaper reported, without citing anyone.

The company may post an operating loss of about 100 billion yen ($1.1 billion) for the year ending March 31, the report said. The final loss could be double that amount depending on inventory conditions in its fourth quarter, the Nikkei said. Calls to Sony’s Tokyo headquarters before regular business hours by Bloomberg News weren’t answered.

Sony, the world’s second-biggest consumer electronics maker, forecast in October a full-year operating profit of 200 billion yen. Last month the company said it may revise profit targets because of a “much” larger-than-anticipated deterioration in the economy.

The company also said it will cut 16,000 positions, curtail investments, farm out production and move away from unprofitable businesses.

Charges from factory closures and early retirement deals in the U.S. and France could be tens of billions of yen, the Nikkei said.

A stronger-than-expected yen may also reduce Sony’s overseas earnings when repatriated, the report said. The company may also write down about 50 billion yen of its Sony Life Insurance Co. holdings, the newspaper said.

To contact the reporter on this story: Tak Kumakura in Tokyo tkumakura@bloomberg.net.

Last Updated: January 12, 2009 17:51 EST