Sony Profit Drops Less Than Anticipated

Sony Corp. said its profit fell a less-than-expected 54% to $370 million in its fiscal first quarter as higher sales of camcorders and notebook computers helped offset lower prices for mobile phones. Analysts were expecting Sony, the world’s second-largest maker of consumer electronics, to report a loss. Sales fell 8.4%, with declines in all five of its businesses, including music and movies. For the second straight quarter, Tokyo-based Sony derived more of its operating profit from games, where it generated just 8% of sales, than from mainline electronics. That was even as Sony’s game sales shrank 16% and profit on the business skidded 28%. Shipments of its best-selling PlayStation, which have driven earnings in the last 18 months, fell 13%, reflecting sated demand for the 5-year-old machine and mounting expectations for its replacement. Operating profit in the main electronics business plunged 74% as Sony slashed prices. Sony’s American depositary receipts rose $3.81 to close at $123.81 on the NYSE.