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Toshiba net profit down 29% on tax payments

Kyodo

Toshiba Corp. said Thursday its group net profit dropped 29.1 percent in the April to December period from a year earlier to ¥38.68 billion on increased tax payments, though sales expanded on robust demand for electric components.

The major electrical machinery maker said its group operating profit surged 56.1 percent to ¥153.35 billion on consolidated sales of ¥4.59 trillion, up 13.5 percent, due to its favorable solar power business as well as its transport equipment operations.

The company said sales of its NAND flash memory fared well amid solid smartphone demand, while profits in its social infrastructure business declined due partly to a slowing in the nuclear generation system operation amid the nationwide reactor shutdown.

Toshiba left unchanged its full-year group earnings projection, expecting its net profit to rise 29.3 percent from the previous year to ¥100 billion and operating profit to expand 49.9 percent to ¥290 billion, on sales of ¥6.3 trillion, up 8.6 percent.

Profit up at Canon

Canon Inc. logged a 2.6 percent increase in group net profit to ¥230.48 billion for the business year that ended in December as the benefits of the weakened yen more than offset sluggish sales of digital cameras.

The maker of printers, photocopiers and cameras said Wednesday its consolidated operating profit grew 4.1 percent to ¥337.28 billion on group sales of ¥3.73 trillion, up 7.2 percent from the previous year. Canon’s overseas business accounted for around 80 percent of total sales in 2013.

The results fell short of Canon’s earlier projections for a group net profit of ¥240 billion and operating profit of ¥360 billion on sales of ¥3.75 trillion.

The company said sales of compact digital cameras plunged 28 percent in 2013 to 13.20 million units compared with the previous year, due to weak economic conditions and the spread of camera-equipped smartphones. Sales of cameras with interchangeable lenses fell 7 percent to 7.65 million units, it said.

But sales of laser printers and copiers were solid due partly to the introduction of new products amid brisk business demand, the company said.

The company expects sales of compact digital cameras to fall around 20 percent to 10.50 million units in 2014, with those of digital cameras with interchangeable lenses to remain almost flat at 7.6 million units.