* Hirai to take new posts April 1, Stringer remains chairman
* Stringer to leave chairman's post in June for separate
* Company set for fourth year of net losses, TVs in trouble
* Sony to brief on management changes on Thursday
By Yoko Kubota
TOKYO, Feb 1 Sony Corp named Vice
President Kazuo Hirai as president and CEO, replacing Howard
Stringer who will step down from day-to-day management in a
long-expected change for a company struggling to regain its
driving force in consumer electronics.
Stringer will remain chairman of the company until June,
when he will become chairman of the board of directors, a
separate post that will not be directly involved in company
management, Sony spokeswoman Mami Imada said. The are no plans
to replace him in the chairman's role, she added.
Sony announced the changes ahead of its earnings report on
Thursday, which is expected to forecast the company will post a
net loss for the fourth year in a row as its TV division bleeds
red ink. Hirai will take over on April 1.
The last year has been brutal for many Japanese companies,
hit by a strong yen that hurt exports, and two natural disasters
-- the March earthquake in Japan and record floods in Thailand.
But Sony has also come under fire for losing the innovative
edge behind products like the Walkman and the Playstation, and
ceding ground to rivals such as Apple Inc and Samsung
Electronics as consumers snapped up their iPhones,
iPods and Galaxy gadgets.
The urbane and English-speaking Hirai, 51, will have to plot
a course to revitalise the electronics giant as consumers lose
interest in its products and gravitate instead towards
smartphones and tablet PCs from other brand names.
Sony's shares have lost nearly two-thirds of their value
since Welsh-born Stringer, who turns 70 later this month, took
the helm as CEO in 2005.
In contrast, Apple shares have galloped ahead more than
1,000 percent, while Samsung, a maker of smartphones, flat
panels and computer chips, is up more than 100 percent over the
Hirai was effectively anointed as Stringer's successor last
March when he was promoted to head Sony's consumer products and
services businesses, which produce the bulk of Sony's $85
billion in annual sales.
He made his name in the PlayStation video games division,
once a key profit driver for Sony that fell into the red for
four consecutive years until he took the reins and pulled it
back into the black two years ago.
"The path we must take is clear," he said in a
statement on Wednesday.
"To drive the growth of our core electronics businesses --
primarily digital imaging, smart mobile and games ; to
turn around the television business; and to accelerate the
innovation that enables us to create new business domains."
Stringer, a former journalist who later ran U.S. broadcaster
CBS, was brought in as a rare foreign CEO at a top Japanese
company to shake things up and restore its innovative edge in
consumer electronics. Many analysts though see his major
achievement as cost cutting.
Stringer's restructuring efforts included selling off TV
factories in Spain, Slovakia and Mexico and outsourcing more
than half of its production to other companies, including Hon
Hai Precision Industry, the contract electronics maker that also
counts Apple as its key customer.
In recent months, Sony exited an LCD panel joint venture
with Samsung, which will allow it to procure screens for its TVs
It also agreed to buy out Ericsson's half of
their smartphone venture for $1.5 billion to shore up its
position in a market where Apple and Samsung have become
Sony's share of the flat-panel television market has been
eroded by the rise of Samsung and a host of nimbler Asian
players, while a hacking scandal last year undermined confidence
in its management.
Many of Japan's other electronics titans have also stumbled
in recent years. In the current reporting season, Nintendo
and Sharp Corp both issued
bigger-than-expected loss projections for the full year.
South Korean rivals such as Samsung have been particularly
aggressive in investment and blessed with favourable currency
movements, while Apple has stolen much of the innovative thunder
that once emanated from Japan.
Sony reports third-quarter earnings on Thursday, when it is
also due to brief the media on the management reshuffle.
Analysts polled by Thomson Reuters I/B/E/S gave a consensus
forecast of just 8.8 billion yen ($115.41 million) in operating
profit for the key October-December quarter, when consumers
spend heavily on gadgets for year-end gift-giving, and 8.2
billion yen for the full financial year to March.