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Battery Recalls Kill Sony Profits
by , 9:25 AM EDT, October 26th, 2006
Sony took a hard hit to its bottom line in the July/September quarter thanks in part to a massive battery recall. Profits for the quarter dropped 94 percent, according to a report at Forbes.
The battery recall, along with Sony's poorly performing video game business, pulled profits down to 1.7 billion yen (about US$14 million) for the quarter, down from 28.5 billion yen (about $239 million) for the same time last year.
Sony is in the middle of a recall 9.6 million laptop batteries it manufactured for several computer companies including Apple Computer, Dell, Lenovo, and several others. The batteries can overheat and pose a potential fire hazard.
Earlier this week, Sony executives apologized for the problems the batteries and associated recall have caused.
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