SONY CORP ADR : Sony forecasts bigger-than-expected loss

TOKYO (Reuters) - Sony Corp on Thursday forecast a much bigger-than-expected annual operating loss, its first annual loss in 14 years due to a sharp appreciation in the yen, steep price falls and restructuring costs.

The maker of Bravia LCD TVs, Cyber-shot digital cameras and PlayStation game consoles now expects an operating loss of 260 billion yen ($2.9 billion) for the year ending March 31, down from a 475.3 billion yen profit a year earlier.

A cut to its earnings outlook had been expected, but the scale of the revision surpassed expectations.

Sony's latest forecast compares with a previous company estimate of a 200 billion yen profit, and a consensus forecast for a loss of 8.9 billion yen in a poll of 18 analysts by Reuters Estimates.

The revision was Sony's third this business year as the company reels from the spreading impact of the global financial crisis and recession.

(Reporting by Kiyoshi Takenaka)