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Sony Faces Another PC Battery Recall

Oct 31, 2008

Sony said five PC makers including Hewlett-Packard and Toshiba will recall 100,000 computer battery packs made by the Japanese electronics maker due to a fire hazard.

Sony (NYSE: SNE) said the recall is expected to have limited impact on its earnings, and its shares outperformed a falling Tokyo stock market on Friday.

The recall is a fraction of a much bigger recall of 9.6 million Sony PC batteries in 2006, which cost the company around $360 million.

The U.S. government issued on Thursday a recall of 35,000 Sony batteries and the Tokyo-based company said it would recall a further 65,000 batteries worldwide.

PC makers have reported 40 cases of overheating, including four cases where users suffered minor burns, and 21 cases of minor damage from fires and overheating, a Sony spokeswoman said.

The recall affects around 74,000 notebook PCs sold by HP (NYSE: HPQ) and 14,400 from Toshiba.

The faulty batteries are also used in laptop PCs from Dell, Acer and Lenovo Group, Sony said.

Sony blamed the faulty batteries on factory changes dating back up to four years, which it believes may have affected the quality of some battery cells.

Other incidents of overheating may have involved a problem with raw materials, the company said.

Sony last month recalled 438,000 of its Vaio laptops due to concerns about overheating batteries.

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