New Sony president sees profit target as too high
AFP, Tokyo,
Sony's new president thinks it will be difficult for the Japanese electronics giant to hit its target of a 10 percent operating profit margin, a newspaper report said on Friday. Ryoji Chubachi told the Asahi Shimbun in an interview that it would be "difficult" to achieve the margin in the year to March 2007, saying "it is a target not a commitment." Chubachi sees it as a top priority to revive the core electronics business after Sony has failed to keep up with the competition, the Asahi said, adding that the company's operating profit margin is expected to run a just 1.0-2.0 percent in the current year to March 31. Earlier this month Sony announced that Howard Stringer, head of Sony's US subsidiary and a former president of CBS News, would replace Sony career man Nobuyuki Idei as chairman and chief executive effective June 22. Sony also picked Chubachi, an engineer, as his deputy, promoting him to president and chief operating officer from executive deputy president.
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