Japanese electronics and entertainment giant Sony Group Corp. reported a 3.4% drop in its annual profit but projected Friday a comeback to record profits for the current fiscal year.

Tokyo-based Sony’s net profit for the year through March totaled 1.03 trillion yen ($6.6 billion), down from 1.07 trillion yen in the previous fiscal year.

Ending a plan to release an electric vehicle with Japanese automaker Honda Motor Co. hurt its earnings. Rising costs of computer chips also bit into profit and remain a concern, according to Sony, which has film, music and video-game operations.

Sony is forecasting a 1.16 trillion yen ($7.4 billion) profit for this fiscal year, which would be a record for the company and a 13% jump from the year that just ended.

Annual sales at Sony for the fiscal year that just ended rose 3.7% from the previous year to nearly 12.5 trillion yen ($8 billion), boosted by hit films such as the latest in the “ Demon Slayer” series and “Kokuho,” and by healthy demand for games and network…