• Video and Film
  • cartridgewebsite-com-big-banner-02-09-07-2016
  • mse-big-new-banner-03-17-2016-416616a-tonernews-web-banner-mse-114
  • 2toner1-2
  • Print
  • big-banner-ad_2-sean
  • 05 02 2016 429716a-cig-clearchoice-banner-902x177
  • mse-big-banner-new-03-17-2016-416716a-tonernews-web-banner-mse-212
  • 7035-overstock-banner-902x177
  • 4toner4


 user 2006-04-27 at 11:39:00 am Views: 40
  • #15110

    Canon sees record Q1 net profit
    April 2006 – Tokyo (JPN): Canon has posted a Q1 net profit rise of 16
    per cent to ¥108.3 billion ($942 million), citing strong sales of
    digital cameras and copiers.
    Sales grew 9.5 per cent to ¥923.3 billion.

    Canon 1st-Quarter Net Probably Rose on Digital Camera Sales
    06 — Canon Inc., Japan’s second-biggest manufacturer by market value,
    will probably say profit rose 11 percent in the first quarter on cost
    cuts and rising sales of digital cameras made for hobbyists and
    Net income at Canon probably rose to 103 billion yen
    ($899 million) in the three months ended March 31, from 93 billion yen
    a year earlier, based on the median of five analysts’ forecasts. The
    company, which reports tomorrow, forecast 98 billion yen profit for the
    period in January.
    President Fujio Mitarai extended Canon’s lead
    over rivals Sony Corp. and Olympus Corp. in the camera market and
    increased profit margins by focusing on models with interchangeable
    lenses. He also sold more color copiers, helping sales of ink and
    paper, to shield Canon’s earnings as prices for more basic consumer
    electronics declined.
    “The company will continue to announce good
    results,” said John Yang, an equity analyst at Standard & Poor’s
    in Tokyo. “Its market position in digital cameras is extremely strong
    and its cost structure is very lean.” He has a “strong buy” rating
    on the company’s shares.
    A weaker-than-expected yen helped to
    expectations for a rise in earnings. Canon, which gets 70 percent of
    its sales abroad, on Jan. 30 it based first-quarter goals on rates of
    115 yen against the dollar, and 135 yen against the euro. The yen
    traded at an average 117.73 against the dollar in the period and 140.91
    against the euro.
    Shares of Canon rose 13 percent in the quarter,
    double the 5.9 percent gain on the Nikkei 225 Stock Average, and
    reached a record on April 21.
    The company’s market value is the second-largest among Japanese manufacturers after Toyota Motor Corp.
    SLR Boom
    profit for the first quarter probably rose 9.8 percent to 157 billion
    yen from a year earlier, compared with the company’s earlier estimate
    of 153 billion yen, the analysts said. Sales will probably rise 7.9
    percent to 910 billion yen.
    Canon, the maker of Powershot and EOS
    cameras, has focused on more profitable single-lens reflex cameras,
    where it controls 53 percent of the global market, IDC said in an April
    4 report.
    “Canon’s digital still camera production is running above
    plan,” Ryohei Takahashi, an analyst at Merrill Lynch & Co.’s
    brokerage unit in Tokyo wrote in a report dated April 19.
    margins in the camera division improved to 19.4 percent from 14.9
    percent a year earlier, the company estimates. The company is aiming to
    expand the proportion of SLRs it ships of the total digital camera
    Canon’s share of the global digital camera market rose to
    29 percent in 2005, with shipments of 16.2 million units, according to
    researcher IDC. Canon overtook Sony Corp. as the world’s biggest
    digital camera seller in 2004.

    Easing Competition
    expects operating profit at its camera business to gain 42 percent to
    33.8 billion yen, on an 8.8 percent sales increase to 174 billion yen.
    is easing up in both digital cameras and printers,” said Pascal Masse,
    who helps manage $2 billion of Japanese equities at Aberdeen Management
    Asia Ltd. in Singapore, said before the earnings announcement. “Canon
    is bound to benefit even more from that.”
    Operating profit at
    Canon’s copier and printer unit, which makes up 70 percent of sales, is
    expected to gain 4.6 percent to 147.3 billion yen in the first quarter,
    the company has said. The unit’s revenue is expected to rise 6.4
    percent to 631.6 billion yen, as sales of faster and multifunctional
    printers lead users to buy more ink and special printing paper.

    Record Profit
    forecasting a seventh year of record profit, said on Jan. 30 net income
    will rise 8 percent to 415 billion yen this year. Operating profit will
    gain 12 percent to 653 billion yen and sales to rise 8.1 percent to
    4.06 trillion yen.
    “It will be difficult for the company to attain
    its forecasts,” Takahashi said. “This is because average unit price
    declines are continuing for copiers. He cut Canon’s rating last month
    from “buy” to “neutral.”
    Mizuho Securities Co. analyst Ryosuke
    Katsura still expects Canon’s earnings to grow. Katsura on April 19
    raised his earnings forecast for Canon because of rising sales of laser
    printers, narrowing digital camera price declines and a weakening yen.
    expect brisk investment in laser-beam printers in 2006,” said Katsura,
    who has a “strong buy” rating on Canon stock. “Also we expect the
    rate of digital camera decline to be smaller than previously expected.”