Canon slashes its annual profit forecast

TOKYO, JAPAN: Japanese technology giant Canon slashed its annual profit forecast again, blaming the global slowdown and a strong yen, for its quarterly earnings drop of more than a third.

The maker of laser printers and digital cameras said it now expected a net profit of ¥234bn in the fiscal year to March, down from the ¥250bn forecast in July and ¥290bn in April.

Sales for the fiscal year would amount to ¥3.53-trillion instead of ¥3.69-trillion, it said.

"As for the outlook in the fourth quarter of 2012, the global economy is expected to see low growth due to the sluggish economies in Europe and slowdown in emerging economies," the company said in a statement.

Canon revised its forecast as it recorded a net profit of ¥50.1bn for the third quarter to September, down 36% year-on-year, while revenue declined 13% to ¥799.95bn.

The global financial crisis and a strong yen have affected Japanese exporters, forcing prices up and shrinking the value of repatriated income.

Canon has also been hurt by a slowdown in China where demand for Japanese products suffered because of a spat between the two countries over an East China Sea island chain believed to sit atop vast mineral reserves.

Both countries claim the archipelago as part of their territory.

Canon joined a string of Japanese firms that temporarily shut some factories in China saying they feared retribution over the diplomatic spat.

Source: AFP via I-Net Bridge.