Sony aims to return TV, game businesses to profit by end of FY 2010

The Japanese electronics giant is also targeting an annual 5 percent operating income margin by the end of fiscal 2012 as it continues cost-cutting efforts and mulls entry into the lithium-ion battery business for electric vehicles.

"I think we've come a long way," said Chairman Howard Stringer, who has been doubling as president since April. "We are better, leaner and faster."

The company, which makes Bravia liquid crystal display TVs and PlayStation 3 game consoles, has been shutting down plants, cutting jobs and streamlining operations as it fell deeply into the red with profits eroded by a stronger yen and the global economic downturn.

Sony is also eyeing grabbing a 20 percent share of the worldwide LCD TV market in three years and pinning hopes on boosting sales through the launch of 3-D TVs and games next year. The company is aiming to generate more than 1 trillion yen in revenue from 3-D-related products in the year ending in March 2013.

The electronics maker has been struggling to return its TV business to the black in the face of competition from overseas rivals including Samsung Electronics Co. of South Korea, which have been able to offer low-cost products in vibrant markets like China and other emerging countries.

"We were too indulgent about our view on price deterioration," Nobuyuki Oneda, Sony's chief financial officer, said in explaining why the company has repeatedly failed to deliver its promise to restore profitability.

Earlier this year, Stringer overhauled the company's management team, bringing in younger officials for top positions to enable speedier decisions in streamlining operations and costs.

"This is a new Sony," Stringer said. "The team here is as digitally connected as our devices." Sony said it has already achieved around 80 percent of the 330 billion yen in cost cuts that it plans to carry out during the current business year. It has also slashed 19,500 jobs worldwide since September last year.

The company booked a group net loss of 63.4 billion yen for the April-September period, but trimmed its full-year loss forecasts on accelerated cost-cutting efforts.

"While we have improved the outlook for this year, I am not satisfied," Stringer said. "We must deliver sustainable financial results."

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