Sony cut its annual profit forecast by 10 per cent after taking an impairment on the sale of its battery unit in the latest move by the consumer electronics giant to focus on its most lucrative businesses.

Operating income will be 270 billion yen (€2.34 billion) in the 12 months ending March, down from a projection for 300 billion yen, the company said on Monday. Prior to the release, analysts had, on average, expected 307.5 billion yen of earnings this fiscal year.

Sony agreed to sell its battery unit to Murata Manufacturing for about 17.5 billion yen and also transfer 8,500 workers, resulting in a 33 billion yen impairment for its components business. The company had announced the sale in July without disclosing a price, but warned the deal would likely negatively impact earnings.

Chief executive Kazuo Hirai has narrowed the scope of operations to focus on businesses that make money.

He has relied on games, the largest unit by revenue, to keep investors happy as he deals with the fallout from April's earthquakes in Japan which impacted the production of camera modules.

– Bloomberg