The global recall and replacement of millions of laptop batteries, and start-up costs for the PlayStation 3 console, pushed Sony's operations into the red for the July to September quarter, despite a jump in sales.
The company reported an operating loss of ¥20.8 billion ($174.5 million) against an operating profit of ¥74.6 billion in the same period last year. The loss includes the estimated ¥51.2 billion that Sony will lose as a result of the laptop battery recall currently under way.
Sony's net income, which includes profit and loss from its core operations and subsidiaries, and other extraordinary items, dropped 94.1 percent to ¥1.7 billion.
However, sales and operating revenue rose 8.3 per cent to ¥1.85 trillion. The digital still camera business enjoyed a particularly strong quarter, with the DSC-T10 model proving popular with consumers. Sony's mobile phone joint venture with Telefonaktiebolaget LM Ericsson, Sony Ericsson Mobile Communications AB, also enjoyed record sales thanks in part to the popularity of its Walkman and Cybershot phones. In the motion picture sector the movie Talladega Nights: The Ballad of Ricky Bobby helped Sony Pictures Entertainment, Sony said.