Sony Stock Tumbles in Tokyo Amid Earthquake Fallout
Sony Corp. shares fell 6.8 percent in Tokyo on Monday, hurt by earthquake damage to an image sensor plant on the southern island of Kyushu.
The fallout from two earthquakes late last week and the strengthening of the Japanese yen, which hurts exporters, also pulled the Nikkei stock index down 3.4 percent for the day.
A 7.1 magnitude earthquake, the strongest to hit Japan since the devastating quake and tsunami of March 2011, struck near Kumamoto, Kyushu on Thursday evening, followed by an even more powerful 7.3 quake on Saturday morning. The two earthquakes killed at least 41 people, injured approximately 1,000, with tens of thousands evacuated from their homes.
The first quake closed Sony's plant in Kumamoto, which makes image sensors, mostly for digital cameras. "Operations at the site in Kumamoto are still suspended, and we are continuing to inspect the lines, but it is difficult with aftershocks continuing," a representative from Sony's Tokyo headquarters told The Hollywood Reporter.
Sony has two other sites in Kyushu, including one at Nagasaki, which makes sensors for iPhones and has resumed operations after suffering some damage to machinery, said the spokesperson.
Other major Japanese manufacturers, including automakers Toyota and Honda, have also had their supply chains disrupted and are closing some of their plants temporarily.
Sony's stock has now fallen more than 20 percent over the past year. The electronics and entertainment conglomerate, led by CEO Kaz Hirai, will report its fiscal-year earnings on April 28.
This article was originally published by The Hollywood Reporter.