The OEM predicts lower profit based on the higher rate of the yen.
The company predicted a downward trend for this year’s group earnings “citing the persistent higher yen and sluggish sales in emerging economies” reported The Japan Times News. Canon predicts a net profit of ¥165 billion ($1.57 billion/€1.44 billion), which is down 25.1 percent from last year’s results, and group sales have been revised down 11.6 percent to ¥3.36 trillion ($32.1 billion/€29.4 billion).
The company expects that sales of laser printers will show a significant drop, due to shrinking markets and digital compact cameras, because of a shortage of parts due to a series of earthquakes in southwestern Japan during April. They also predicted a fall in group net profit of 30.1 percent, which was down 11.7 percent from last year.
Toshizo Tanaka, Executive Vice President, made a comment referring to the acquisition of Toshiba Medical Systems, which Canon acquired earlier this year and is in the process of a full takeover of, saying that “clearing procedures by competition watch dogs overseas have been interrupted in some countries”.