Canon's Profit Falls as Yen Hurts Overseas Sales
TOKYO (Thomson Financial) - Japan's Canon said on Thursday its operating profit fell 11.7 percent in the second quarter from a year earlier as a stronger yen hurt overseas sales.
In addition to the yen's advance against the dollar, slumping demand for office equipment and rising material costs cut into the firm's bottom line, it said.
Operating profit in the quarter fell to 160.2 billion yen ($1.5 billion ), down from a profit of 181.47 billion yen posted a year earlier.
Net profit dropped 13 percent to 107.8 billion yen as revenue dipped 1.9 percent to 1.1 trillion yen.
In the first half to June, operating profit tumbled 15 percent to 330.98 billion yen, while net profit fell 16 percent to 214.48 billion yen.
First-half revenue dipped 2.5 percent to 2.11 trillion yen.
For the full year to December 2008, the company has left unchanged its earnings guidance made in April, when it forecast a net profit of 500 billion yen and an operating profit of 770 billion yen.
But Canon raised its revenue projection to 4.59 trillion yen from 4.57 trillion yen.
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