Canon Q1 net profit more than triples

Canon Q1 net profit more than triples

Tokyo: Canon’s first quarter net profit more than tripled from a year earlier as a recovering global economy drove demand for cameras and office equipment.

The Tokyo-based company said on Monday that its net profit for the January-March quarter totaled ¥56.8 billion ($611 million), up from 17.7 billion a year earlier.

Operating profit more than quadrupled to ¥86.8 billion ($934 million), while sales rose 10% to ¥755.5 billion ($8.1 billion).

Canon Inc. credited its results to a turnaround in US consumer spending, as well as expanding markets in China, India and elsewhere in Asia.

Sales of laser and inkjet printers rose, the company said. Worldwide demand also grew for single-lens reflex cameras. Compact digital cameras performed well in emerging economies, though sales lagged in developed countries.

Western and other developed economies face uncertainties in the months ahead but “appear to be steadily headed for recovery," the company said. China and other emerging nations, which are expected to fuel global growth, are likely to continue enjoying healthy expansion, it said.

For the full year through 31 December, it expects to book an 82% rise in net profit to ¥240 billion on sales of ¥3.75 trillion.

Unlike many Japanese companies, Canon’s fiscal year matches the calendar year. Canon bases its earnings on US accounting standards.

Ahead of its first quarter results, Canon shares jumped 3.5% to ¥4,395 in trading Monday, outpacing the Nikkei 225 index’s 2.3% rise.