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 user 2009-11-06 at 11:40:01 am Views: 57
  • #22887

    Japan’s Canon suffers
    profit slump
    , Reports Seventh Quarterly Profit

    TOKYO — Japanese high-tech giant Canon
    Inc. said Tuesday that its profits more than halved in the three months
    to September from a year earlier because of poor sales of electronics
    and a strong yen.The camera and office equipment maker logged a net
    profit of 36.7 billion yen (400 million dollars) for the third quarter
    of its business year, down 55.8 percent from a year earlier.Operating
    earnings tumbled 53.6 percent to 60.0 billion yen as revenue slid 21.5
    percent year-on-year to 774.3 billion yen, it said.Canon said it was
    seeing signs that demand was stabilising in key markets, and maintained
    its forecast for a net profit of 110 billion yen for 2009.The company
    anticipates an operating profit of 190 billion yen and revenue of 3.20
    trillion yen, also unchanged from its earlier projections.It has enjoyed
    strong sales of high-end digital single-lens reflex (SLR) cameras in
    recent years, but its sales of photocopiers and precision machinery have
    been hit hard by the global economic downturn.

    Demand for
    compact digital cameras also remained sluggish in the third quarter and
    prices continued to decline, pressuring profits, it said.”Demand for
    compact digital cameras is expected to remain stagnant for the time
    being … whereas demand for digital SLR cameras is expected to remain
    strong,” Canon said in a statement.”As for inkjet printers, conditions
    are expected to gradually improve.”Revenue from office equipment dropped
    28.0 percent in the quarter, while sales at the camera business fell
    8.3 percent, the company said.For the nine months to September, Canon
    said its net profit dropped 76.4 percent from a year earlier to 70.1
    billion yen, as revenue declined 27.2 percent to 2.26 trillion yen.
    Canon Q3 Profit Plunges
    camera and office equipment maker Canon Inc. reported Tuesday a sharp
    decline in profit for the third quarter, impacted negatively by lower
    sales volumes of office equipment and other products as well as stronger
    yen. Looking ahead, Canon backed its fiscal 2009 earnings and sales
    forecast, but said it sees weak demand for most of its key products.Net
    income for the quarter attributable to the company plunged 55.8% to
    36.73 billion yen or 29.76 yen per share form 83.04 billion yen or 65.91
    yen per share in the previous year.Net sales were 774.32 billion yen,
    down 21.5% from 985.99 billion yen in the prior year, largely due to the
    effects of reduced sales volumes of office equipment and other products
    along with the substantial rise in the value of the yen.Product
    segment-wise, sales from business machines declined to 488.76 billion
    yen from 651.00 billion yen in the comparable period. Sales from cameras
    were 229.03 billion yen, down 8.3% from 249.77 billion yen in the prior
    year. Optical and other products sales plunged to 56.53 billion yen
    from 85.21 billion yen in the year-ago quarter.

    sales from Japan decreased 17.8% to 161.86 billion yen from 196.97
    billion yen in the year-earlier quarter. Americas sales were 217.51
    billion yen, lower than 286.12 billion yen, and sales from Europe were
    237.45 billion yen, much lower than 316.66 billion yen in the previous
    year. Sales from other areas dropped to 157.50 billion yen from 186.24
    billion yen in the comparable period.The average value of the yen during
    the quarter was 93.46 yen to the U.S. dollar, a year-on-year
    appreciation of about 14 yen, and 133.60 yen to the euro, a year-on-year
    appreciation of nearly 28 yen.Canon noted that despite the launch of
    new products and ongoing cost-cutting efforts aimed at an improved gross
    profit ratio, the impact of the appreciation of yen and reductions in
    sales volumes led to a 3.1 point decline in the ratio to 45.1% for the
    quarter. Consequently, gross profit decreased by 26.5% to 349.3 billion
    yen.For the nine-month period, net income attributable to Canon was
    70.08 billion yen or 56.77 yen per share, much lower than 297.53 billion
    yen or 236.00 yen per share in the comparable period. Year-to-date, net
    sales declined 27.2% to 2.26 trillion yen from 3.10 trillion yen in the
    year-ago period.Looking ahead, Canon said it anticipates demand for
    network digital digital multifunction devices, or MFDs, and laser beam
    printers will likely remain challenging. Demand for compact digital
    cameras is expected to remain stagnant for the time being due to the
    drop in consumer sentiment resulting from the weak economy, but sees
    strong demand for digital SLR cameras. The company also anticipates
    demand for inkjet printers will gradually improve.

    s) -  Canon
    expects exchange rates for the fourth quarter of 90 yen to the U.S.
    dollar and 130 yen to the euro, representing an appreciation of about 6
    yen versus the U.S. dollar and a depreciation of about 4 yen against the
    euro compared with the previous year.Looking ahead to the full year
    2009, the company said it continues to expect net income attributable
    toCanon of 110.00 billion yen, down 64.4% from 309.15 billion yen
    reported last year. Net sales are expected to decline 21.8% to 3.20
    trillion yen last year. Canon continues to expect operating profit of
    190 billion yen, lower 61.7% than the previous year.