Canon scales back earnings forecast

JIJI

Canon Inc. has lowered its earnings forecasts for the year through December, taking into account the yen’s strength, a slowdown of the Chinese economy and a boycott of Japanese products in China.

Canon said Thursday it now projects an operating profit of ¥356 billion, down from ¥390 billion previously estimated, on sales of ¥3.53 trillion, down from ¥3.69 trillion. Its net profit is projected at ¥234 billion, down from ¥250 billion.

The firm factored in a worst case scenario that the Chinese boycott, sparked by the Senkaku territorial dispute, will continue through the end of the year, Vice President Toshizo Tanaka said.

For January-September, Canon reported group sales of ¥2.53 trillion, down 2.5 percent from a year before, operating profit of ¥246.15 billion, down 13.2 percent, and net profit of ¥163.39 billion, down 12.7 percent.