Sony Makes Big Profits, Just Not on Electronics

Not all companies with Sony in the name are toxic. Take Sony Financial, the insurer in which Sony owns a 60 percent stake. While the parent company said last week that it expects to lose $1.1 billion for the 2013-14 fiscal year, Sony Financial is doing just fine, thanks.

The insurer expects net income of ¥40 billion for the current fiscal year, better than its earlier target of ¥37 billion. The updated profit forecast slightly exceeded the ¥39.7 billion yen consensus of 15 analysts. Sony Financial also increased its forecast of revenue by 6.7 percent, and revenue for the first three quarters of the current fiscal year have increased 20.2 percent. The strong results are thanks in part to growth in Sony Financial’s life insurance and auto insurance premiums.