Sony may close factories to deal with slowdown

Sony chief executive Howard Stringer said on Monday the electronics maker needs to get its fixed costs down, just days after it issued a profit warning and said may need to shut some plants.

Sony is bracing for slowing demand for its Bravia flat TVs and Cyber-shot digital cameras as the global financial crisis takes its toll on the company's export markets.

"We have to get our fixed costs down," Stringer told a business seminar.

But Stringer also said Sony intends to keep its performance targets for the year to March 2011, which includes hitting a return on equity of 10 percent and doubling revenues from Brazil, Russia, India and China to 2 trillion yen (£12.39 billion).

On Thursday Sony cut its operating profit outlook by 57 percent for the year to March 2009. In addition to plant closures, it said it may have to cut jobs and reduce capital spending.

Sony competes with Canon in digital cameras and with Samsung Electronics in flat TVs.

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