During the fiscal year ended March 31, 2012 (fiscal year 2011), our operating results, particularly in our electronics business, were negatively affected by the Great East Japan Earthquake and the 2011 Thailand floods. Conditions were exacerbated by the economic downturn across the developed world, which caused other currencies to fall in comparison with the persistently strong yen. Owing to reduced sales in the Consumer Products & Services and Professional, Device & Solutions segments, our consolidated sales and operating revenue for the period declined 9.6%. We recorded an operating loss of 67.3 billion yen, compared to the 199.8 billion yen of operating income recorded in the previous fiscal year. This deterioration in operating income was due to a decline in net sales, and a significant deterioration in equity in net income (loss) of affiliated companies, despite the remeasurement gain associated with obtaining control of Sony Mobile Communications*.
Net loss attributable to Sony Corporation´s stockholders was 456.7 billion yen. This includes a substantial valuation allowance, which is a non-cash charge that does not have an impact on consolidated operating income (loss) or cash flows. Nonetheless, the recording of a loss of this magnitude weighs heavily on me, and as CEO of this company, I fully intend to turn this situation around.
* On February 15, 2012, Sony acquired Ericsson´s 50% equity interest in Sony Ericsson, and changed its name to Sony Mobile Communications AB upon becoming a wholly owned subsidiary of Sony.