Sony Corp's Incredible $2.9 Billion Loss Warning

Sony Corp. (NYSE:SNE) shares are now $1 away from a new 52-week low and their $2.9 billion annual operating loss is almost four times analysts’ estimates.

Shares of Sony (SNE) are down to $19.05 today and have lost 61% in the past year.

Sony Corp. slashed its annual earnings forecast today, projecting its first net loss in 14 years on slumping sales, a strong yen and restructuring costs.

The last (and only) time Sony reported a loss, for the fiscal year ending March 1995, the red ink came from one-time losses in its movie division, marred by box office flops and lax cost controls.

Let the analysts make their adjustments to the stock before you think about buying, its ugly.

Last month, Sony announced widespread cost cuts, including trimming 8,000 of its 185,000 jobs and shutter five or six plants — about 10 percent of its 57 factories. It also said it was cutting an additional 8,000 temporary workers, who aren't included in the global work force tally.

Sony also plans to reduce its electronics investments by about one-third by the end of March 2010, although it did not give specific numbers.

The moves are expected to deliver more than 100 billion yen ($1.1 billion) in savings a year by March 2010, the company says.