*NEWS*CANON CORP NET PROFIT DOWN 8.9%

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*NEWS*CANON CORP NET PROFIT DOWN 8.9%

 user 2007-10-29 at 12:24:00 pm Views: 54
  • #19005

    Canon Warns Stronger Yen to Cut Sales
    October 
    2007; TOKYO — Canon Inc.’s net profit fell 8.9% in the third quarter,
    hit by foreign-exchange losses because of a stronger-than-expected yen.
    The Tokyo-based precision-electronics maker maintained its full-year
    profit outlook, though it trimmed its sales expectations.Canon posted a
    group net profit of 105.3 billion yen ($921.9 million) for the
    July-September quarter, compared with 115.59 billion yen a year
    earlier. Group sales rose 6.4% to 1.051 trillion yen from 987.97
    billion yen, helped by solid sales of copiers and digital cameras,
    while group operating profit edged up 0.9% to 174.22 trillion
    yen.Because of the stronger yen, Canon booked a loss of 18 billion yen
    related to foreign-currency-denominated accounts receivable. A change
    to its valuation methods for machinery and equipment also pulled down
    profit.But strength in its digital-camera business pushed up sales,
    thanks to rising demand in emerging markets. “We expect demand from
    emerging markets to keep rising for a while,” said Masahiro Osawa,
    managing director of finance and accounting at Canon.For the year
    ending Dec. 31, Canon continues to predict group net profit of 500
    billion yen, though it trimmed its group-sales outlook to 4.56 trillion
    yen from 4.58 trillion yen, as the Japanese currency has been stronger
    than anticipated. Canon reports its earnings based on U.S. accounting
    standards.

    Separately, Canon rival Ricoh Co. reported a 16% drop
    in net profit for its fiscal second quarter because of higher costs
    related to the integration of its U.S. businesses.Ricoh posted group
    net profit of 19.31 billion yen for the quarter ended Sept. 30, down
    from 22.92 billion yen a year earlier. Group sales rose 11% to 558.26
    billion yen from 502.35 billion yen, backed by strong sales of office
    equipment. Ricoh left its outlook unchanged for the year ending in
    March. It expects group net profit of 117 billion yen and group sales
    of 2.250 trillion yen.Ricoh reports its earnings based on U.S.
    accounting standards.