Tuesday, July 29, 2008

Canon Copier Profit Down 12%

Clippings from the news...


Japan -

TOKYO, July 24 (Reuters) - Japan's Canon Inc posted a 12 percent fall in quarterly profit on Thursday, hit by weaker monochrome copier demand and a firm yen versus the dollar, but the camera and office equipment maker kept its full-year outlook that exceeds market expectations.

April-June operating profit at Canon (nyse: CAJ - news - people ), which competes with Xerox Corp (nyse: XRX - news - people ) and Ricoh Co Ltd (otcbb: RICOY.OB - news - people ) in printers and copiers, dropped to 160.15 billion yen ($1.5 billion) from 181.47 billion yen a year earlier.


Profitability at its office equipment operations has come under pressure as an economic slowdown has meant businesses are putting off buying or replacing copiers, although its high-end digital cameras enjoyed brisk demand.

The company, which competes with Xerox Corp (XRX.N: Quote, Profile, Research), Ricoh Co Ltd (7752.T: Quote, Profile, Research) and Konica Minolta Holdings Inc (4902.T: Quote, Profile, Research) in printers and copiers, is also grappling with the soaring cost of raw materials and the profit-slicing impact of a stronger yen.

"We expect the yen to remain strong and for high raw materials and fuel prices to continue. The operating envrionment is tougher than we had originally thought," Canon Managing Director Masahiro Osawa told a news conference.

Yahoo News -

Canon said its group operating profit dropped to 160.15 billion yen in the April-June quarter from 181.47 billion yen a year earlier. Net profit fell 13 percent to 107.84 billion yen on sales of 1.11 trillion yen, down 1.9 percent.

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