Canon Q3 Profit Falls, Cuts Full Year Goals On Weak China

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The FINANCIAL — Digital camera maker Canon Inc. on October 27 said its third-quarter attributable profit declined to 49.18 billion yen from last year’s 58.25 billion yen. Earnings per share dropped to 45.03 yen or $ 0.38 from 52.67 yen, according to Nasdaq.

Operating profit was 77.26 billion yen, compared to 71.83 billion yen last year. Income before income taxes fell to 73.96 billion yen from 80.16 billion yen.

Net sales grew to 925.78 billion yen from 872.21 billion yen in the prior year.

According to the company, despite a gradual recovery in sales of interchangeable-lens digital cameras in Japan and Europe, severe conditions continued in other regions. Additionally, sales volume for digital compact cameras decreased compared with the same period of the previous year.

Looking ahead, the company sees net income attributable to Canon of 225.0 billion yen, a year-on-year decrease of 11.7 percent.

Canon projects full-year consolidated net sales in 2015 of 3.820.0 trillion, a year-on-year increase of 2.5 percent.

Operating profit is estimated to be 365.0 billion yen, a year-on-year increase of 0.4 percent.

Income before income taxes is estimated to be 355.0 billion yen, a decrease of 7.4 percent from last year.

In July, Canon projected full-year consolidated net sales in 2015 of 3.93 trillion yen, a year-on-year increase of 5.4%, Operating profit of 380.0 billion yen, a year-on-year increase of 4.5%, and net income attributable of 245.0 billion yen, a year-on-year decrease of 3.8%.

The latest projections have taken into consideration the sudden economic slowdown in China and elsewhere across Asia, as well as other developing countries, along with the negative impact on sales and gross profit due to a revised foreign exchange rate assumption.

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