By Zeba Fatima

The Japanese electronics company says it is forecasting a net loss of 220 billion yen (AUD $2.7 billion) for the fiscal year ending in March 2012. Previously, Sony expected to make 90 billion yen (AUD $1.1 billion).
 
Releasing its third quarter earnings, Sony said for the quarter ending in December 2011, it lost 159 billion yen (AUD $1.9 billion). And for the nine months ending in December 2011, Sony reported a net income loss of 201 billion yen (AUD $2.3 billion).
 
"Consolidated sales decreased significantly year-on-yer primarily due to the impact of the floods in Thailand, deterioration in market conditions in developed countries, and unfavourable foreign exchange rates," said incoming Sony CEO Kazuo Hirai.
 
"Sony must steer a new course, we will need to make painful decisions and execute them, but I believe these are unavoidable for Sony's future," Hirai said at a post-results new conference.
 
Sony cited a number of factors for the deteriorating outlook, including the appreciation of the Japanese yen and the flooding in Thailand.
 
Sony's reported loss comes a day after the company publicised plans to replace CEO Howard Stringer in April with Hirai, who oversees the company's videogame and consumer electronics divisions.