Friday, March 13, 2009

Canon cuts 2010 profit outlook by 75%

Canon Inc. (CAJ: News ) lowered its profit outlook for 2010 by 75% to figures more in line with the economic downturn as the company grapples with the impact of a stronger yen and weak demand on its operations, according to media reports Thursday.

Accordingly, for 2010, Canon now forecasts net income of 150 billion yen, down sharply from its prior outlook for net income of 600 billion yen set in 2007. The company also lowered its outlook for revenues for the year to 3.7 trillion yen from the prior forecast of 6 trillion yen.

Canon had recorded profits for eight consecutive years through fiscal 2007 on stronger demand for copiers, digital cameras and other products. However, the company has since witnessed a sharp fall in demand for its cameras and copiers as the global economic crisis hit its major export markets.

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