Sony's profit forecast below analyst estimates

Tokyo

SONY Corp has forecast annual profit that fell short of estimates, hurt by costs to repair an earthquake-damaged chip factory and slowing demand for smartphone components.

Net income will probably decline 46 per cent to 80 billion yen (S$1.01 billion) in the 12 months ending March 2017, the Tokyo-based company said in a statement on Tuesday. That compares with the 196 billion yen average of analysts' projections compiled by Bloomberg.

The earthquake erased Sony's previous prediction for its most profitable year in almost two decades, as chief executive officer Kazuo Hirai sought to shift away from consumer electronics. The slowdown in demand for image sensors that power cameras in smartphones - including Apple Inc's iPhone - will test Sony's ability to generate more of its earnings from PlayStation 4 gaming consoles, streaming services fo…