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Monday, October 23, 2006
"Difficult to Specify" Cause of Fire, "Cannot Guarantee 100% Safety," -- Sony Explains Controversial Li-ion Secondary Battery Malfunction

On October 19, 2006, Sony Corp held a press conference to announce a downward revision of its FY2006 consolidated earnings forecasts.

The company lowered its previous operating income estimate announced in July 2006 by ?80 billion to ?50 billion. Of the ?80 billion, the impact of its Li-ion secondary batteries for notebook PCs, which led to the company's recall and replacement decision after a series of fire generation accidents, accounts for ?51 billion as of today. On this battery issue, Sony said it will hold another press conference to explain its technical analysis, along with full details of its voluntary replacement program.

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