Sony reduces annual profit forecast by 10pc

The Japanese electronics giant Sony has cut its annual profit forecast by 10 per cent due to one-time costs from the sale of its battery business.

It will sell the unit to Murata Manufacturing and said it expected to book impairment charges of 33bn yen linked to the sale, report agencies.

The firm now expects operating profits of 270bn yen ($2.6bn, £2.1bn) for the year ending March, 30bn yen lower than its previous forecast.

Sony is scheduled to release its first-half results on Tuesday.

The announcement was made after markets had closed in Tokyo. During the trading session shares closed 1.9 per cent higher.

The sale of the battery unit was announced earlier this year but on Monday Sony and Murata said they`d signed a binding agreement.

The decision to sell the unit is part of a larger restructuring drive to focus on the company`s core profitable units of videogames, entertainment and camera sensors.