Sony Corporation (ADR) (NYSE:SNE) shares are rising after the company announced it would sell its New York headquarters for $1.1 billion. Shares of the stock closed Thursday on a 6 percent increase and rose 7 percent more in pre-market trading Friday. The news comes just a little over a week after Sony Corporation (ADR) (NYSE:SNE) announced it would build a water-resistant smartphone.
The sale of the company’s headquarters is the largest asset it has sold yet as it seeks to become profitable again. The building is located at 550 Madison Avenue in New York, and it was designed by the renowned architect Philip Johnson. The Financial Times reports that the sale of that building will bring a $7.6 million gain in operating income.
Sony Corporation (ADR) (NYSE:SNE) has sustained losses four years in a row. It has been struggling as sales of televisions have declined amidst competition from Samsung Electronics Co., Ltd. (LON:BC94) and the high prices it must charge overseas because of the strength of the yen. Last year Sony Corporation (ADR) (NYSE:SNE) reported record losses of $5.09 billion. The company has also announced that it will eliminate 10,000 jobs in its efforts to stay afloat.
Sony said it is adjusting its forecast to account for the sale it will earn from selling the building. It said it would lease space in the building for up to three years from the Chetrit Group, a commercial real estate investor. For the year ending in March, the company is trying to see operating profits in electronics and net profits and positive free cash flow at the group level.