Canon profit hit by slower sales in emerging economies

The camera and copy machine maker, however, forecast a rebound in net profit for 2017 as it expects an increase in demand for office equipment thanks to strength in the US and some emerging economies.

Canon profit hit by slower sales in emerging economies

World Bulletin / News Desk

Canon said Tuesday its full-year profits shrank by almost a third in last year, blaming a slowdown in emerging markets and the impact of a stronger yen.

The Tokyo-based company said in a statement that demand for lower end black-and-white printers declined "due to the continued economic slowdown in emerging countries".

At the same time the camera market contracted, while the firm suffered from a shortage of components caused by supply chain disruptions after April's earthquakes in the southern Kumamoto region.

A pick-up in the yen against the dollar and euro last year also hurt the bottom line, it said.

A stronger yen is a negative for Japanese exporters because it makes their products less competitive abroad and shrinks repatriated profits. 

The Japanese unit has, however, weakened about 10 percent against the dollar since November on expectations Donald Trump's big-spending, tax-cutting policies will ramp up US inflation and interest rates.

For the year December 2016, Canon booked a net profit of 150.65 billion yen ($1.32 billion), down 31.6 percent from the year before.

Sales dipped 10.5 percent to 3.40 trillion yen and operating profit dropped 35.6 percent to 228.87 billion yen.

For 2017, Canon predicted a 12.8 percent rise in net profit to 170 billion yen, an 11.4 percent hike in operating profit to 255 billion yen and a rise of 17.6 percent in sales to 4 trillion yen.

Shares in Canon closed down 1.44 percent at 3,345 yen at the Tokyo Stock Exchange, before the earnings report was released.

Güncelleme Tarihi: 31 Ocak 2017, 12:06