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TOKYO, Oct 27 (Reuters) – Japan’s Canon Inc (7751.T: Quote, Profile, Research, Stock Buzz) posted a 26 percent fall in quarterly operating profit and cut its outlook to below market expectations after the global slowdown sent the yen higher and hit demand for copiers and digital cameras.
Operating profit at Canon, the world’s largest digital camera maker ahead of Sony Corp (6758.T: Quote, Profile, Research, Stock Buzz) and Nikon Corp (7731.T: Quote, Profile, Research, Stock Buzz), came in at 129.3 billion yen ($1.38 billion) in July-September, down from 174.2 billion yen a year earlier.
Growing worries about the global economy have depressed sales of office equipment such as copiers to corporate clients, while cooling consumer sentiment has hit digital camera demand.
For calendar 2008, Canon on Monday cut its operating profit forecast by 25 percent to 580 billion yen, down from 756.67 billion yen a year earlier and compared with a consensus of 693.1 billion yen from 19 analysts polled by Reuters Estimates.
Shares in Canon, which competes with Xerox Corp (XRX.N: Quote, Profile, Research, Stock Buzz) and Ricoh Co Ltd (7752.T: Quote, Profile, Research, Stock Buzz) in copiers and printers, have lost 49 percent since the start of the year through Friday, outperforming the Tokyo stock market’s electrical machinery index , which fell 56 percent. (Reporting by Kiyoshi Takenaka; Editing by Lincoln Feast)
Good followup posting.