October 25, 2012
Prolonged Euro crisis and Japanese boycott in China contribute to the OEM’s projection decrease.
Canon has announced a cut in its full-year outlook following a disappointing Q3 operating profit, brought about by a severe decline in sales in China with consumers continuing to boycott the brand and an extended Euro crisis, reports Reuters.
The Japanese OEM, which generates 80 percent of its revenue overseas, revealed that operating profit for the July-September quarter declined by 42.2 percent compared with the same quarter 2011 to ¥70.88 billion ($888 million/€682 million), short of the forecast of ¥99.9 billion ($1.2 billion/€922 million).
Canon has subsequently lowered its operating profit outlook by approximately 10 percent from ¥390 billion ($4.8 billion/€3.68 billion) to ¥356 billion ($4.4 billion/€3.3 billion).
Canon has cited torpid demand in the euro zone and a strong yen as contributing factors towards the decline, as well as temporarily cutting production in its factories in China following September’s anti-Japan protests. Sales of its cameras and consumer products have also suffered through a boycott of goods from Japan.
Makoto Kikuchi, CEO, Myoji Asset Management, commented: “I think this is pretty much within the range that people expected for a downwards revision so I don’t get a very negative feeling about it.”
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