Canon Q1 net 33.9 bln yen, down 28.7%

Canon Q1 net 33.9 bln yen, down 28.7%

Canon Q1 net 33.9 bln yen, down 28.7%

The FINANCIAL -- Japanese imaging group Canon said its first quarter net profit dropped 28.7% to 33.9 billion yen reflecting an increase in the corporate tax as a result of the fiscal reform passed in March and slumping sales of digital cameras.

The group said that despite solid growth in the U.S., interchangeable-lens digital cameras continued to face severe conditions in other regions while sales volume for digital compact cameras decreased in all regions compared with the same period of the previous year. Net sales of inkjet printers also decreased, mainly in Japan and emerging countries.

Consequently, first quarter net sales decreased 1.3% year on year to 857.4 billion yen despite the positive effect of favorable currency exchange rates, according to Borsa Italiana.

The gross profit ratio rose 1.4 points year on year to 51.1% thanks to ongoing cost-cutting activities and efforts aimed at controlling price reductions while gross profit increased 1.6% despite the decline in sales.