Stringer's Blu-Ray Win May Fail to Spur Sony Growth
Feb. 21 (Bloomberg) -- Sony Corp. Chairman Howard Stringer's triumph over Toshiba Corp. may not be enough to prevent earnings growth from slowing.
Morgan Stanley and Mitsubishi UFJ Securities Co. say they don't plan to raise forecasts for Sony after Toshiba, the leading promoter of the HD DVD format, on Feb. 19 said it will shut the business for high-definition video players, surrendering to Sony's Blu-ray. Sony's profit will rise 3.7 percent in the 12 months ending March 2009 after almost tripling this fiscal year, according to the average of 20 estimates compiled by Bloomberg.
While Stringer will try to capitalize on winning the entertainment industry's biggest technology competition in two decades, analysts say a stronger yen and weakening U.S. demand may hinder earnings gains. Blu-ray player makers led by Samsung Electronics Co. and Matsushita Electric Industrial Co. may challenge Tokyo-based Sony's ability to dominate in the $22 billion market for DVD machines.
Morgan Stanley and Mitsubishi UFJ Securities Co. say they don't plan to raise forecasts for Sony after Toshiba, the leading promoter of the HD DVD format, on Feb. 19 said it will shut the business for high-definition video players, surrendering to Sony's Blu-ray. Sony's profit will rise 3.7 percent in the 12 months ending March 2009 after almost tripling this fiscal year, according to the average of 20 estimates compiled by Bloomberg.
While Stringer will try to capitalize on winning the entertainment industry's biggest technology competition in two decades, analysts say a stronger yen and weakening U.S. demand may hinder earnings gains. Blu-ray player makers led by Samsung Electronics Co. and Matsushita Electric Industrial Co. may challenge Tokyo-based Sony's ability to dominate in the $22 billion market for DVD machines.
posted by Sirdvd at
7:44 AM
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