Embattled Sony to separate video-and-sound unit, pursuing profitability, not sales targets

Markets Associated Press

Sony will spin off its video-and-sound business into a separate company and shrink its headquarters as part of a three-year turnaround plan.

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Kazuo Hirai, chief executive of the struggling Japanese electronics maker, outlined the company's strategy Wednesday, at Sony's Tokyo office.

He said Sony Corp. will invest in innovative areas, including through acquisitions and partnerships, although he didn't announce specific deals.

The company is targeting an operating profit of 500 billion yen ($4.2 billion) and a 10 percent return on equity for the fiscal year through March 2018, but it won't target sales, highlighting its new approach of valuing profitability and not going after size.