Sony says China business has recovered, foresees growth

BEIJING Tue Dec 25, 2012 11:40am IST

Sony Corp's VAIO laptop cases are displayed on a wall as an employee waits for customers at a Sony store in Beijing December 25, 2012. REUTERS/Petar Kujundzic

Sony Corp's VAIO laptop cases are displayed on a wall as an employee waits for customers at a Sony store in Beijing December 25, 2012.

Credit: Reuters/Petar Kujundzic

Related Topics

Stocks

   

BEIJING (Reuters) - Sony Corp's (6758.T) business in China has "more or less" returned to levels seen before recent protests against Japan's actions over a group of disputed islands, the Japanese company's China chief, Nobuki Kurita, told reporters on Tuesday.

Calls for boycotts of Japanese products broke out across China in September after Japan nationalised two of a group of disputed East China Sea islands, known as the Diaoyu in Chinese and the Senkaku in Japanese, by purchasing them from their private owners.

The spat plunged relations between Japan and China into a deep freeze and hit sales of Japanese goods in China. Kurita said, however, that Sony's China business would recover strongly in the coming three business years after a dip in the current one.

"My general impression is business conditions have more or less returned to the pre-crisis environment," he told a media briefing at a Sony store in eastern Beijing.

He saw sales in China falling 10 percent in the business year to next March from the previous year, but rebounding in the year to March 2013 and growing strongly in the two subsequent years.

Kurita declined to comment on what impact the election of the hawkish Shinzo Abe as Japan's new prime minister could have on Japan-China relations.

Abe has vowed not to back down on the island dispute, but still must balance that stance with the need for stable relations with China. Japanese media have reported that he will send a special envoy to China to mend ties.

"There's no market that has no risk," he said when asked about Japan-China relations.

"Our mandate is to maximise our business potential in any given situation."

Kurita said he expects Sony's business in emerging markets to grow about 40 percent from the current level to reach some 2.6 trillion yen in the business year ending in March 2015. China would account for "a good chunk" of that growth, he said.

(Reporting by Norihiko Shirouzu; Editing by Jonathan Standing and Edmund Klamann)

FILED UNDER:

Tech Wrap

Reuters Showcase

India Cricket Chief

India Cricket Chief

Former ICC boss Dalmiya returns as BCCI chief.  Full Article 

S&P on Budget

S&P on Budget

Budget shows commitment to keep fiscal deficit low - S&P.  Full Article 

New Phone

New Phone

Samsung unveils sleek new Galaxy phones to battle Apple.  Full Article 

MH370 Search

MH370 Search

Interview: Australia says hunt for missing MH370 jet may be called off soon.  Full Article 

Blogger's Murder

Blogger's Murder

Bangladesh says arrests main suspect in U.S. blogger Avijit Roy's killing.  Full Article 

England under Fire

England under Fire

Changes demanded after England's latest World Cup flop.  Full Article 

Anti-Putin Rally

Anti-Putin Rally

Anti-Putin protesters rally in New York after Nemtsov's murder.  Full Article 

Brit Awards

Brit Awards

Brit awards shake up British album chart, boost Sam Smith.  Full Article 

Lathmar Holi

In Pics: Lathmar Holi

Images of "Lathmar Holi" at Nandgaon in Uttar Pradesh.  Full Coverage 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage