Sony outlines recovery plan

TOKYO — Sony, which has been losing money, will spin off its video-and-sound business into a separate company and shrink its headquarters as part of a three-year turnaround plan to speed up decision-making and become profitable again.

The company is targeting an operating profit of $4.2 billion and a 10 percent return on equity for the fiscal year through March 2018.

It won’t target sales in the plan, highlighting its new approach of valuing profitability and not going after size.

Nestle profits rise, but sales figure off

FRANKFURT, Germany — Food company Nestle S.A. says net profit rose 44 percent last year as the company booked one-time gains from the sale of a stake in L’Oreal and its purchase of dermatology company Galderma.

Stripping out those gains, the company’s earnings per share increased 4.4 percent.

Swiss-based Nestle today reported weak sales growth in Europe, saying business conditions there are volatile, “with deflationary pressure increasing during the year” and little flexibility to increase prices.

Net profit rose to $15.4 billion. The year sales figure was off 0.6 percent, lowered by currency exchange rate effects.

The company’s 50 percent stake in Galderma was revalued upward after it was raised to 100 percent during the year.