Sony quarterly profit up 3-fold on currency gains, sensors

Obvious who benefits from Abenomics now?

Sony quarterly profit up 3-fold on currency gain

In otherwords, real profits aren't up at all. These phantom currency profits will never be realised by investors. All that's happened is that American dollars and Euros now look more valuable when you report them in Japanese Yen. The investors seem to agree since Sony stock is down 2% on this news.

Sony does most of its sales in US dollars, so it's not shocking that the nominal amount of profits appears to be up when they are reported in a currency that has lost value since last year. However, currency profits are not real because they are never actually realised. The US dollars in Sony's American accounts have not all been exchanged into Yen. This exchange only happens artificially on paper in order to balance the books. It has nothing to do with the underlying strength of Sony's business. Nothing communist about that is there?

To make it easily understandable, imagine if Sony decided instead to report in Zimbabwean dollars (or a similar hyper inflating currency). Profits might have been up by 100,000,000,000% over last year... not because Sony's business is improving, just because the currency is losing value.

100% agree M3M3M3. The yen is at its lowest vs the USD in decades. It's not surprising that companies that does most of its sales in US dollars will have falsely inflated profits.

@ M3M3M3

The investors seem to agree since Sony stock is down 2% on this news.

The financial report was released after the Japanese market closed today so the 2% drop had nothing to do with the results. I dare say that the investors will have a very positive reaction when the market opens tomorrow morning.

Sorry Pagos, but it seems like shares down a further 1.4% today in New York. I hope you aren't heavily invested in Sony?

@M3M3M3

I just lost my house...you got a place I can stay?

100% agree M3M3M3. The yen is at its lowest vs the USD in decades. actually its only at its higher level for the last 12~13yrs prior to that it got as high as in2002 it was 130 , 1997 high as 150, and from about 1973~1994 it ranged from 35~125, so for the majority of the last 40yrs the yen has been higher than 130yen/ $ . if you look back to 2008 WFC all the $ imbalance came from the Feds $5triillion in QE, now Japan and the EU are bascially using the same tool people start complaining LOL please the hypocrisy if pathetic . oh dont expect the yen to go below 100y/$ anytime soon. the US is expected to raise interest rates soon and this will probably cause the $ to rise further.