Tokyo: Japan’s Canon Inc posted a a 54% drop in quarterly profit as weak copier demand outweighed robust digital camera sales, and the company kept its annual forecast for a 62% decline.
The result, while in line with market expectations, underscores tight spending budgets by corporations, boding ill for other office equipment makers like Xerox Corp, Ricoh Co and Konica Minolta Holdings.
Canon stood by its operating profit forecast of ¥190 billion ($2.1 billion) for the year to December, which is slightly below the market consensus of ¥197.9 billion in a poll of 22 analysts by Thomson Reuters.
Earnings at Canon, the world’s largest digital camera maker ahead of Sony Corp, have been supported by strong demand for its single-lens reflex (SLR) cameras, which are high-end models with interchangeable lenses. Canon and Nikon Corp together control nearly 80% of the lucrative market.
Operating profit came in at ¥60 billion in July-September, down from ¥129.27 billion a year earlier, and in line with the market consensus of a ¥58.4 billion profit.
Canon shares closed down 1.9% at ¥3,580 ahead of the announcement, underperforming a 1.5% fall in the Tokyo stock market’s electrical machinery index.
Canon shares have gained 32% since the start of the year through Monday, roughly in line with the sub-index.