Sony on track to raise profit margin to five pc

TOKYO, June 22 : Japan's Sony Corp said on Thursday it is on track to hit a target of raising its group-wide operating profit margin to five percent by the year starting April 2007.

The electronics and entertainment conglomerate said in September it aimed for a group operating margin of 5 percent for 2007/08.

Sony's operating margin stood at 2.6 percent last business year, but the company expects the margin to fall to 1.2 percent in the current business year due in part to heavy start-up costs for its PlayStation 3 game console.

''As of the year ending March 31, 2006, we are on target with all the tracking plans,'' Chief Executive Howard Stringer told Sony's annual shareholders' meeting.

''If we deviate at all, we will make changes necessary to achieve those targets, recognizing there is a dynamic and competitive environment out there in which we operate.''

Reuters