Sony Corp. said it would be unprofitable this fiscal year after reporting an unexpected quarterly loss because of the strong yen, flooding in Thailand and waning sales in the U.S. and Europe.

The company expects to post a full-year net loss of 90 billion yen ($1.2 billion), compared with a previous projection for net income of 60 billion yen, it said in a statement on Wednesday, November 2. The Tokyo-based company reported a loss of 27 billion yen for the quarter ended Sept. 30.

Sony made 30 percent of its revenue in Japan, 21 percent in Europe, 20 percent in the U.S. and 18 percent in Asia excluding Japan in the year ended March 31, Bloomberg reports.

Sony last month recalled 1.6 million Bravia flat-panel TVs sold worldwide since 2007 because a faulty component may cause them to melt or catch fire. The recall was voluntary and will have a negligible impact on Sony’s earnings, the company said then.

Sony, which has lost a combined 476.3 billion yen in the past seven fiscal years from the business, began a reorganization of its TV business into three groups.

Samsung, the world’s top TV maker, last week said its TV unit profit posted an operating profit of 240 billion won ($214 million), compared with a loss of 250 billion won a year earlier, helped by models featuring 3-D functionality and Web-based services. The company’s mobile-phone unit had record profit and sales in the quarter ended Sept. 30, it said.

Last week, Sony agreed to buy Ericsson’s 50 percent stake in Sony Ericsson Mobile Communications AB, their London-based mobile-phone venture, for 1.05 billion euros ($1.5 billion) in cash. The deal will help Sony tap demand for smartphones and integrate the operation with its gaming and tablet offerings.

Sony plans to start offering its new PlayStation Vita portable game player next month in Japan. It will go on sale in the U.S. and Europe in February.

The world’s second-largest maker of video-game machines said last month it temporarily suspended about 93,000 user accounts of its online gaming and entertainment services after finding they were hacked.

In April, hacker attacks compromised more than 100 million customer accounts, the second-largest online data breach in U.S. history. Sony suspended those services until July and budgeted 14 billion yen in costs this year.