February 11, 2009 5:50 PM
- Text
Sony Sorry For Laptop Battery Recall
(AP)
Sony executives apologized Tuesday for inconveniences caused by a massive global recall in laptop batteries, but said the problems were now fixed and that none of the company's top leaders would resign over the incident.
The embarrassing spate of battery recalls that is threatening to tarnish the once impeccable Sony brand power is coming at a time when Sony has been struggling to turn around its core electronics business.
It could hurt the Japanese electronics and entertainment company's sales during the critical year-end shopping season. For some, Sony's woes have shaken this nation's confidence in its long prized manufacturing prowess.
Sony slashed its profit forecasts last week, citing the battery recall as well as price cuts in Japan for the next-generation PlayStation 3 video game console. Sony expects an $673 million profit for the fiscal year through March 2007, down 38 percent from its projection in July.
John Yang, equity analyst with Standard & Poor's in Tokyo, said the recall problem is unlikely to devastate Sony's battery operations because only a handful of major companies compete in that business.
"It's definitely making a dent in Sony's image," he said. "But if Sony does well with games and LCD TVs, Sony still has a chance to come back as one of the major players."
Sony Corp. said improvements in production, design and inspection have been made to prevent a recurrence of any laptop overheating problems. Company officials said the problems were caused by microscopic metal particles that mistakenly got inside the battery, causing short-circuiting.
Sony said last week that about 9.6 million lithium-ion batteries, manufactured between August 2003 through February this year, are being recalled worldwide after reports of some computers using the Sony battery packs overheating and bursting into flames.
Top management, including Chief Executive Howard Stringer and President Ryoji Chubachi, would stay on at the company and make the successful completion of the recall a priority, Sony officials said.
"We would like to take this opportunity to apologize for the worries," Sony Corporate Executive Officer Yutaka Nakagawa said, bowing slightly with two other executives at a news conference at a Tokyo hotel.
There would be no move to drop or curtail the company's laptop battery production, the company said.
The embarrassing spate of battery recalls that is threatening to tarnish the once impeccable Sony brand power is coming at a time when Sony has been struggling to turn around its core electronics business.
It could hurt the Japanese electronics and entertainment company's sales during the critical year-end shopping season. For some, Sony's woes have shaken this nation's confidence in its long prized manufacturing prowess.
Sony slashed its profit forecasts last week, citing the battery recall as well as price cuts in Japan for the next-generation PlayStation 3 video game console. Sony expects an $673 million profit for the fiscal year through March 2007, down 38 percent from its projection in July.
John Yang, equity analyst with Standard & Poor's in Tokyo, said the recall problem is unlikely to devastate Sony's battery operations because only a handful of major companies compete in that business.
"It's definitely making a dent in Sony's image," he said. "But if Sony does well with games and LCD TVs, Sony still has a chance to come back as one of the major players."
Sony Corp. said improvements in production, design and inspection have been made to prevent a recurrence of any laptop overheating problems. Company officials said the problems were caused by microscopic metal particles that mistakenly got inside the battery, causing short-circuiting.
Sony said last week that about 9.6 million lithium-ion batteries, manufactured between August 2003 through February this year, are being recalled worldwide after reports of some computers using the Sony battery packs overheating and bursting into flames.
Top management, including Chief Executive Howard Stringer and President Ryoji Chubachi, would stay on at the company and make the successful completion of the recall a priority, Sony officials said.
"We would like to take this opportunity to apologize for the worries," Sony Corporate Executive Officer Yutaka Nakagawa said, bowing slightly with two other executives at a news conference at a Tokyo hotel.
There would be no move to drop or curtail the company's laptop battery production, the company said.
- 1
- 2
- Next Page »
-
Scott Conroy Scott Conroy is a National Political Reporter for RealClearPolitics and a contributor for CBS News.
Follow on Twitter »
Latest Now in MoneyWatch
- Greek pols approve harsh austerity after riots
- Unpopular austerity package ignites Greece protests
- This week: Budget, Greece, housing, and inflation
- Previewing Obama's 2013 budget: Politics rule
- Clashes as Greek Parliament debates bailout law
- Ohio unemployment hits 3-year-low
- Jill on Money: Retirement investing, allocation, long term care
- Could "web-lining" be dangerous?
- Insurers respond cautiously to contraceptive plan
- Judge: Legally, breastfeeding not related to pregnancy
- Budget deficit drops to $27 billion in January
- Why the Powerball Jackpot is part of my investment strategy
- Is the new VW Beetle diesel worth the money?
- Consumer sentiment highlights risks to recovery
- Valentine blues? 10 best cities to be single
- December trade deficit widens to $48.8 billion
- Alcatel-Lucent returns to profit in 2011
Latest CBS News Headlines
on Facebook Most Discussed Stories
on CBS News
- Buying jewelry
- More human remains found at Calif. ranch
- Pakistani PM charged with contempt
- Pakistan's Supreme Court charges prime minister with contempt, escalating political crisis
on Facebook Most Discussed Stories
on CBS News






