By Barry Eitel
SAN FRANCISCO
Sony’s chief executive on Wednesday announced colossal plans for his company’s future – and they don’t involve smartphones or its well-known televisions.
Kazuo Hirai, Sony CEO since 2012 but company man since 1995, told investors in a conference call that he plans to increase profits 25-fold by 2018.
The company forecasts it will pull in about $170 million (20 billion yen) in 2015. Hirai wants to bulge the operating profit to an immense 4.2 billion (500 billion yen) by March 2018.
“We now have a clear aim in sight for completing a large-scale restructuring effort,” Hirai told investors.
This restructuring effort includes shifting away from computers, televisions and phones – markets where Sony once enjoyed a sizeable share and significant exposure, but has now been eclipsed by brands like Samsung and Apple. Investors have been pushing for dropping these product lines for several years.
Instead, Hirai will move Sony to work more on internal components for smartphones and cameras, as well as entertainment. The company will refocus on its film studio, crippled by a cyberattack last November, and its PlayStation videogame console.
Sony’s continued authority in the gaming world is clearly important to Hirai’s plan. He originally joined the company as part of its computer and videogame division in the early days of the original PlayStation.
His strategy, though, is not to drive sales. Instead, he plans to restructure the company in such a way to germinate rapid growth.
“If our initial mid-term corporate strategy was about reforms, the second mid-term strategy starting from the next business year will be about generating profit and investing for growth,” he said.
Hirai restructuring of Sony during his tenure in the top spot caused Wall Street to smile. Shares of Sony have risen 80 percent in the past year. Sony’s stock climbed steadily Wednesday after Hirai’s call.
