Sony losing power as batteries sale costs it £235m

Sony today slashed 30 billion yen (£234.6 million) from its full-year profit forecast due to greater-than-expected losses on the sale of its batteries business.

The electronics giant is jettisoning its batteries unit to focus on video games, entertainment and camera sensors and has agreed a 17.5 billion-yen deal with Murata Manufacturing.

However, the transaction will cost it 33 billion yen, Sony said, as well as 4.5 billion yen in income tax in the year to March 31. Operating profit will therefore be capped at 270 billion yen, versus the 300 billion yen it predicted in July. Last year it made 294.2 billion yen.

The news was a blow to the growing group of Sony supporters, who have been encouraged by speedier sales of its PlayStation 4 console and a promise that production of image sensors would soon return to full capacity on strengthening smartphone demand.

Sony also recently launched its virtual reality headset, raising hopes for a strong Christmas trading period.