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Sony Loses $2.2 Billion in Market Value After Forecast Cut

Sony Corp. lost $2.2 billion in market value today after Chief Executive Officer Kazuo Hirai cut his earnings forecast and posted a loss because of stalling demand for Bravia TVs, Cyber-shot cameras and Hollywood movies.

The stock slumped 11 percent in Tokyo trading, the biggest drop in five years, after Hirai slashed his full-year net income projection by 40 percent to 30 billion yen ($305 million). Sony also unexpectedly posted a second-quarter loss, missing analyst estimates for a return to profit. Moody’s Investors Service Inc., meanwhile, threatened to cut Sony’s credit rating to junk.