Sony Music Reverses Loss; U.S. Arm Shows Declines

Sony Corp. reports that its music business in the first quarter, which ended June 30, had operating income of ¥4.4 billion ($36.2 million), compared to an operating loss of ¥5 billion ($41.1 million) in the same period a year ago. Revenues rose to ¥147.3 billion ($1.19 billion) from ¥130.7 billion ($1.06 billion). The company attributes the gains to strength in its Japanese music business, which saw higher sales, decreasing advertising expenses, and income from the sale of a studio.

The U.S. division, Sony Music Entertainment Inc., had an unspecified operating loss on an unspecified decline in revenues. The company says the timing of new releases and the strength of the dollar relative to other currencies were to blame.

Tokyo-based Sony Corp. says the worldwide economic slowdown continues to hurt its businesses, including its flagship electronics unit. The company posted a net loss of ¥30.1 billion ($243 million), vs. a net loss of ¥92.4 billion ($746 million) in the first quarter last year. Revenues rose to ¥1.64 trillion ($13.2 billion) from ¥1.57 trillion ($12.7 billion).

Sony shares closed yesterday in New York down $5.95 at $51.86.