UPDATE 1-Sony Europe head sees no recovery in W.Europe soon

Thu Sep 3, 2009 6:55am EDT

* Says trough not reached in Europe

* Says recovery in E.Europe will take longer

* Sees single digit sales decline in W. Europe

(adds more comment, background)

BERLIN, Sept 3 (Reuters) - Economic recovery in western Europe is still a year away and eastern Europe may not see an improvement for even longer because of uncertainties such as rising unemployment, the head of Sony (6758.T) Europe said.

"In my personal opinion, we have not seen the bottom yet in the western part of Europe," Fujio Nishida told journalists on Thursday at the IFA consumer electronics trade show in Berlin.

"I think we will see some recovery this time next year in western Europe," he said, adding it may take slightly longer in eastern Europe.

Sony Chief Executive Howard Stringer had been slightly optimistic on Wednesday at IFA, when he presented the company's plans to launch 3D TVs.

Stringer had said:"Maybe the worst is over."

But Nishida said, in his opinion rising unemployment and debt issues were likely to delay an economic improvement.

He also said he was not particularly positive about the fourth quarter and the holiday shopping season.

"We predict a single digit percentage sales decline in business in western Europe compared with 2008," Nishida said.

Sony on Wednesday also presented plans to make its Vaio PCs, PlayStation 3 game machines and Blu-ray players compatible with the 3D technology at IFA, Europe's largest consumer electronics show.

The company plans to offer 3D TVs next year in a move to spur sales amid slowing growth in flat TV demand.

Nishida declined to comment on pricing for 3D TVs, saying it was too early to tell what Sony would be asking for the TVs.

Sony is the world's second-largest LCD TV maker behind Samsung Electronics Co Ltd (005930.KS).

Sony's flat TV business has been in the red for five straight years due to fierce price competition with Samsung, a firmer yen and the global economic downturn, dragging down the electronics and entertainment conglomerate's overall earnings performance.

(Reporting by Nicola Leske)

Related Quotes and News

Company
Price
Related News
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.