Sony shares drop steeply on loss warning

A visitor compares Sony Cop.'s new 4K resolution television with high resolution standard televisions at a discount chain store in Tokyo, Japan, May 14, 2014. Sony shares dropped nearly 7% on Thursday morning after the company projected another year of losses ahead - EPA Photo.

TOKYO: Sony shares dropped nearly 7% on Thursday morning as investors reacted to a warning from the Japanese electronics giant that it would remain in the red for another year after it booked a US$1.26bil annual loss.

In late morning trade, the Tokyo-listed stock fell to 1,682 yen (US$16.50), down 6.81%, on the back of Wednesday's announcement, which aggravated concerns about a turnaround in Sony's hard-hit consumer electronics division.