Sony shares rise about 2% in volatile trading following share buyback announcement
A file photo of Hiroki Totoki, Sony Group Corporation executive, delivering a keynote address at CES 2025 in Las Vegas, on January 6, 2025.
Artur Widak | Nurphoto | Getty Images
Sony Group shares rose about 2% Wednesday in volatile trading after the Japanese conglomerate announced a 250 billion yen ($1.7 billion) share buyback and operating income beat estimates.
Operating income for the last three months of the financial year came in at 203.6 billion yen, beating mean analyst estimates of 192.2 billion yen, though it was down 11% from the same period last year.
In the earnings report, the Japanese-based electronics, entertainment and finance company announced a stock buyback of shares worth 250 billion yen.
Sony also provided details on a partial spinoff of its financial unit. The company plans to distribute slightly more than 80% of the shares of common stock of the spinoff to shareholders of Sony Group through dividends.
The financial unit will list its financial operation this year and will be classified as a discontinued operation in Sony's accounting from the current quarter, the company added.
However, Sony's outlook for the current financial year ending in March was lackluster.
The company forecasted its operating profit to rise a slight 0.3% to 1.28 trillion yen, after flagging a 100 billion yen hit from U.S. President Donald Trump's trade war.
Yet, Sony clarified that the estimated tariff impact did not reflect the trade deal made between the U.S. and China on May 12 and that the actual impact could vary significantly.
Read More China Industrial Profits Return to Growth
READ SOURCE
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
an hour ago
New tax break for auto loans could save some buyers thousands of dollars. But will it boost sales?
Millions of people receive a federal tax deduction for the interest they pay on home loans. Under President Donald Trump's new tax-cut law, many people for the first time also could claim a tax deduction for interest on their vehicle loans. The new tax break will be available even to people who don't itemize deductions. But there are some caveats that could limit its reach. The vehicles must be new, not used. They must be assembled in the U.S. And the loans must be issued no sooner than this year, to list just a few qualifications. Here are some things to know about the new auto loan interest tax deduction: Trump pledged while campaigning last year to make interest on car loans tax-deductible. He said it would make car ownership more affordable and 'stimulate massive domestic auto production.' The idea made it into the big tax-cut bill passed by Congress, which Trump signed into law July 4. The law allows taxpayers to deduct up to $10,000 of interest payments annually on loans for new American-made vehicles from 2025 through 2028. It applies to cars, motorcycles, sport utility vehicles, minivans, vans and pickup trucks weighing less than 14,000 pounds, a threshold referred to as light vehicles. But it only applies to vehicles purchased for personal use, not for fleets or commercial purposes. The tax break can be claimed starting on 2025 income tax returns. But the deduction phases out for individuals with incomes between $100,000 and $150,000 or joint taxpayers with incomes between $200,000 and $250,000. Those earning more cannot claim the tax break. U.S. automobile dealers sold 15.9 million new light vehicles last year, a little over half of which were assembled in the U.S, according to Cox Automotive. It says around 60% of retail sales are financed with loans. After excluding fleet and commercial vehicles and customers above the income cutoff, an estimated 3.5 million new vehicle loans could be eligible for the tax break this year, if purchasing patterns stay the same, said Jonathan Smoke, chief economist at Cox Automotive. The tax break applies to vehicles assembled in the U.S., no matter where the company making them is headquartered. All Tesla vehicles sold in the U.S. are assembled in this country. But so are all Acura brands, the luxury model of Japanese automaker Honda. Last year, 78% of Ford vehicles sold in the U.S. were assembled in this country, according to Cox Automotive. But customers wanting the tax break will need to pay attention to specific models. While the Ford Mustang is assembled in Michigan, the Mustang Mach-E is built in Mexico. General Motors assembles all of its Cadillacs in the U.S. But just 44% of its Chevrolets sold last year were assembled in the U.S., and just 14% of Buicks, according to Cox Automotive. That's a lower U.S-assembled rate than Honda (60%), Toyota (52%) and Nissan (48%), which all are headquartered in Japan. The average new vehicle loan is about $44,000 financed over six years. Interest rates vary by customer, so the savings will, too. In general, the tax deduction will decline after the initial year, because interest payments on loans are frontloaded while principal payments grow on the back end. At a 9.3% interest rate, an average new vehicle buyer could save about $2,200 on taxes over four years, Smoke said. The tax savings would be less on a loan at 6.5%, which is the rate figured into calculations by the American Financial Services Association, a consumer credit industry trade group. Whereas the tax deduction for home loan interest can be claimed only by people itemizing on their tax returns, Congress wrote the deduction for auto loan interest so that it can apply to all taxpayers, including those claiming the standard deduction. On a tax form, the auto loan deduction will come before the calculation of a taxpayer's adjusted gross income. That's an important distinction, because many states use a taxpayer's federal adjusted gross income as the starting point for figuring their state income taxes. If that income figure is lower, it could reduce the state taxes owed. At Bowen Scarff Ford in Kent, Washington, customers started asking about the auto loan tax deduction before Congress had even taken a final vote on the tax-cut bill, said General Manager Paul Ray. So he decided to promote it on the dealer's website. A website ribbon exclaims: 'CAR LOAN TAX DEDUCTION NOW AVAILABLE" while also promoting an electric vehicle tax credit that is ending soon as a result of Trump's tax-cut law. 'I think it's going to help incentivize vehicle purchases through this year," Ray said. Celia Winslow, president and CEO of the American Financial Services Association, concurred: 'For some people deciding — should I buy it, should I not — this could be something that tips the scale.' Others remain skeptical. According to Smoke's math, the average annual tax savings is smaller than a single month's loan payment for a new vehicle. 'I don't think it moves the needle on somebody on the fence of buying a new vehicle or not," Smoke said. "But I think it could influence their decision to finance that vehicle instead of paying cash or instead of leasing a vehicle.'
CNBC
2 hours ago
- CNBC
Court scraps some of Rome's demands in UniCredit's BPM bid, keeps Russia exit
An Italian court has scrapped some of the conditions Rome had set to clear UniCredit's takeover offer for Banco BPM, except a request that it stop operating in Russia - which the Milan-based lender may struggle to comply with. The court's ruling published on Saturday fails to dispel uncertainty around the bid, which UniCredit first announced in November and formally launched in April, opening up a battlefront with Italy's conservative government. A representative for UniCredit said the government would now need to issue a new law decree. "UniCredit continues to evaluate the evolving situation and will take all relevant next steps in a timely manner," the spokesperson added. CEO Andrea Orcel was quoted as saying on Friday that a partial annulment of the government's decision could still leave the bank unable to pursue the offer. UniCredit's BPM bid is one of a dozen takeover offers reshaping Italian finance. Like BBVA's bid for Sabadell, which has met resistance in Madrid, it has seen the government emerge as a key player in banking consolidation. UniCredit also faces strong opposition from Germany's government over its investment in Commerzbank. Italy has invoked national security reasons for its decision, a stance that has drawn scrutiny from European Union authorities. "There can be no doubt about the properness" of the order to leave Russia, which is "totally legitimate," the court said in its ruling. Following supervisory demands, UniCredit has sharply cut its exposure to Russia, but it still runs a local subsidiary and needs approval from Russian authorities to leave the country. A Treasury official said Rome was satisfied with the ruling, since the court recognised as lawful the order to quit Russia, deemed the most important of the conditions. UniCredit has been told to cease its activities in Russia by early 2026, apart from payments handled for Western companies. The court axed a government's request that UniCredit keeps Banco BPM's loan-to-deposit ratio unchanged for five years, and that it maintains both its own and Banco BPM's project finance portfolios in Italy. It made non-mandatory a requirement for UniCredit to keep investments in Italian securities at BPM-owned fund manager Anima Holding. Italy set its terms in April using the government's so-called "golden power", which lets it intervene in transactions involving companies deemed strategic. UniCredit in November bid for Banco BPM after the latter became a shareholder in Monte dei Paschi di Siena, fuelling speculation that the government was advancing long-held plans to promote a combination of the two banks. Banco BPM has rejected UniCredit's approach as hostile and on Saturday it asked its suitor to clarify its intentions.
Hypebeast
3 hours ago
- Hypebeast
Fred Perry and BEAMS Unveil Special Edition Track Jacket
Summary Fred Perryand Japanese retailerBEAMShave joined forces once again for a special edition track jacket, set to launch in late August 2025. Reimagining the iconic Fred Perry silhouette, the new design incorporates BEAMS' signature touch, blending sporty heritage with modern aesthetics. Exclusive to BEAMS, the jacket features bold color paneling and an updated fit, offering a fresh take on the classic that has long symbolized Fred Perry's athletic roots. The piece is crafted from a double-faced tricot fabric, combining polyester and cotton for a comfortable, structured feel ideal for both style and function. Retailing at ¥19,800 JPY ($135 USD), the collaborative jacket marks a continuation of the successful partnership between the British heritage brand and the influential Japanese label. Available nowonline, in limited quantities, it is expected to appeal to both streetwear fans and long-time Fred Perry loyalists alike.
