Tags: Canon | profit | camera | sales

Canon Lowers 2013 Profit Forecast 10 Percent on Slowing Camera Sales

Wednesday, 24 Jul 2013 11:09 AM

Canon Inc., the world’s largest camera maker, cut its net income forecast 10.3 percent after camera shipments fell to the lowest in a decade.

Net income will probably total 260 billion yen ($2.6 billion) in 2013, the Tokyo-based company said in a statement today, cutting its April projection of 290 billion yen. That compares with the 291 billion yen average of 8 analyst estimates compiled by Bloomberg in the past four weeks.

Worldwide camera shipments fell 29 percent to 434 billion yen in the first five months of 2013 from a year earlier, the lowest since 2003, according to the Camera & Imaging Products Association in Tokyo. The maker of EOS models today cut its full-year sales target for compact cameras and single-lens-reflex as consumers increasingly use smartphones to snap shots.

“Cannibalization effects on compact cameras by smartphones have become quite serious in emerging markets,” said Toshiya Hari, a Tokyo-based analyst for Goldman Sachs Group Inc. “Sales of SLR models have been sluggish in countries such as China and in South America or eastern Europe where growth expectation was high, because of weak macro economies.”

Some of the impact on earnings by slowing camera sales gets offset by a weaker local currency at Canon, which makes about 80 percent of its annual revenue outside Japan. A weaker yen boosts the repatriated value of Japanese exporters’ overseas earnings.

The U.S. dollar traded at 99.14 yen as of June 30, up 5.2 percent from 94.22 yen three months earlier. The euro gained 6.8 percent against Canon’s local currency to 128.97 yen during the three months.

A one yen slide against the dollar would boost operating profit by 5.8 billion yen in the nine months from April, Canon said three months ago. A one yen decline against the euro would add 3.5 billion yen to profit, it said.

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Canon Inc., the world's largest camera maker, cut its net income forecast 10.3 percent after camera shipments fell to the lowest in a decade.
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2013-09-24
Wednesday, 24 Jul 2013 11:09 AM
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