Canon lowers full-year profit forecast

PUBLISHED : Wednesday, 24 July, 2013, 2:56pm
UPDATED : Wednesday, 24 July, 2013, 2:56pm

Japan’s Canon lowered its full-year profit forecast by 16 per cent from its outlook three months ago and cut its sales targets for both high-end and compact digital cameras as growth in China and other emerging economies loses steam.

Canon, the world’s largest maker of digital cameras, had already seen sales of its compact cameras hit as consumers increasingly use smartphones to take photos.

The company expects an operating profit of 380 billion yen (HK$29.6 billion) for the year to December, down from 450 billion yen it forecast in April. Analysts’ average full-year operating profit forecast is 448.3 billon yen based on a survey of 23 analysts by Thomson Reuters I/B/E/S.

For the April-June quarter, Canon’s operating profit rose 6.2 per cent to 98.3 billion yen, exceeding the 95.9 billion yen average profit forecast from seven analysts.

Canon’s shares have risen about 40 per cent during an eight-month rally fuelled by the reflationary economic policies of Prime Minister Shinzo Abe, underperforming a 70 per cent rise in Tokyo’s benchmark Nikkei average but outpacing a 26 per cent gain for rival camera maker Nikon.

Canon closed 0.3 per cent higher on Wednesday before the earnings announcement, compared with the Nikkei’s 0.3 per cent decline.