TOKYO, May 14 (Reuters) - Sony ( SONY ) said on

Wednesday it expects operating profit to rise 0.3% to 1.28

trillion yen ($8.70 billion) in the financial year ending in

March.

The Japanese conglomerate has transformed from a maker of

household electronics such as the Walkman to an entertainment

behemoth spanning games, movies, music and chips.

President Hiroki Totoki has strengthened his grip over the

conglomerate, taking the CEO role last month.

Sony ( SONY ) is preparing for a partial spin-off of its financial

unit as it focuses on entertainment.

Including the financial business, operating profit rose 16%

to 1.4 trillion yen, beating analyst estimates.

The conglomerate is grappling with the impact of U.S.

President Donald Trump's trade war.

Last month Sony ( SONY ) raised PlayStation 5 prices in Europe and

Britain last month, citing higher inflation and exchange rate

fluctuations.

($1 = 147.1900 yen)

(Reporting by Sam Nussey; Editing by Muralikumar Anantharaman)