Sony said today it swung to a quarterly loss due to the mounting cost of recalling millions of computer batteries.
The deep loss at Sony comes despite the boost of a softer yen and robust sales of flat TVs and digital cameras.
Top personal computer makers - including Dell, Apple Computer, Toshiba Corporation - and Sony itself are recalling up to 9.6 million Sony-made computer batteries, which in rare cases can overheat and catch fire.
Sony kept its forecast for a sharp fall in annual profit and warned that a price war in the flat TV market could heat up.
Sony, which competes with Nintendo and Microsoft Corporation in video games and Sharp and Matsushita in flat TVs, posted a group operating loss of 20.83 billion yen in the July-September second quarter.
That compares with a restated 74.56 billion yen profit in the same quarter a year earlier. Sales rose 8.3 per cent to 1.85 trillion yen.
Nintendo said its operating profit more than trebled in the fiscal first half, buoyed by its hot-selling DS handheld game device, and it stood by its annual outlook for 60 per cent profit growth.
