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Canon likely saw 7% profit boost in January-September

TOKYO -- Canon's operating profit apparently climbed 7% on the year to just over 260 billion yen ($2.41 billion) for the nine months through September thanks to strong office equipment sales and a weak yen.

     But sluggish camera sales blunted the Japanese company's profits, which had shot up 26% in the January-June half.

     Total sales for the January-September period likely stayed flat from the 2.69 trillion yen booked a year earlier.

     Both sales and profit appear to have grown at its mainstay office equipment unit. The recovery in the business environment has pushed up demand for photocopiers, laser printers and other office equipment around the world. The soft yen has further boosted profits. Yet sales of high-margin consumable items, such as toner, stalled.

     Meanwhile, profits in its imaging systems segment likely dipped from falling digital camera sales. The company sold about 30% fewer compact cameras due to competition from smartphones with better-quality cameras. Weak personal spending in Europe and repercussions from Japan's sales tax hike also contributed to a double-digit drop for interchangeable-lens products, such as SLRs.

     The company is focusing more on higher-end items, which have a wider profit margin, and has slashed production costs, but was unable to completely make up for the slow sales.

     Canon plans to release January-September results on Oct. 27. It is expected to retain its guidance for the year ending in December of an 8% operating profit gain to 365 billion yen.

(Nikkei)

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