Sony announced that it expects to report an annual loss of $3.2 billion after the company had initially predicted a profit. After deferring tax credits from the previous quarter, it took the company in to the red. Sony’s CFO, Masaru Kato, insisted "There is no impact on our operating income or cash flow."

Sony has been through a rough few months with the Japan Earthquake and Tsunami, and then the security breach of its Playstation network. The natural disasters had a huge impact on the firms supply chain and also influenced consumer spending. The security breach has resulted in a reported $170 million recovery, which hindered operating profit. It is clear both have influenced the electronics giant’s performance.

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