Signs Of Intelligent Life At Sony: Earnings Helped By Financial Unit

After five quarters of losses, Sony (SNE) has finally turned a profit.

The news is not terribly impressive since it is the conglomerate’s financial and insurance divisions that pushed the company into the black. The usually mindless practice of corporate cost cuts and lay-offs so prevalent at troubled companies also helped.

Sony’s earnings benefitted modestly as TV screen sales ticked up .

There is still little evidence is the Sony numbers that the company is gaining any ground against competition in the digital camera and game console business. Sony’s studio operation figures were not as impressive as News Corp’s which were lifted by “Avatar”, but they were at least presentable.

Sony may simply want to move out of entertainment and electronics. Its best future may be as a financial services and currency hedging company.

Douglas A. McIntyre