Business

Canon made record net of 384 billion yen in 2005

by Taiga Uranaka

Canon Inc. said Monday its net profit rose 12 percent to a record 384.1 billion yen in 2005, thanks to strong sales of digital cameras and color laser printers.

The company also announced that Senior Managing Director Tsuneji Uchida will be promoted to vice president with an eye to eventually replacing President Fujio Mitarai, who is scheduled to take the helm of the Japan Business Federation (Nippon Keidanren), the country’s largest business lobby, in May.

Canon projects solid earnings growth for 2006, with digital camera sales expected to rise 14 percent to 19.2 million units.

For the past year, the company said revenue rose 8 percent to 3.75 trillion yen thanks to strong sales of color laser printers and ink jet printers.

Sales of digital cameras were led by a 47 percent rise in single lens reflex models to 1.9 million units. Compact models grew 18 percent to 15 million units for the year.

Asked about its film camera business, Canon Senior Managing Director Toshizo Tanaka acknowledged that sales were battered by the popularity of digital cameras but said support for film-based products would continue.

“But we have very strong fans of our products, and we will continue to provide film camera products to them,” he said.

Earlier this month, archrival Nikon Corp. said it would phase out its traditional film camera business to focus on digital products. Konica Minolta Holdings Inc. exited from photography altogether shortly afterward.

Canon had said it was planning to launch surface-conduction electron-emitter display (SED) TVs, a new kind of flat-screen TV jointly developed with Toshiba Corp., this spring. But SED TVs do not figure in the 2006 forecast because prices are so volatile, Tanaka said.

“Given sharper than expected price falls of liquid crystal panel TVs and plasma display panel TVs, we are reviewing our plan to better cope with the situation,” he said.

Uchida, 64, will first be named vice president in a shareholders’ meeting scheduled in March. Mitarai, 70, will double as chairman and president for now.

Uchida will become president when Mitarai becomes chairman of JBF, taking over from Toyota Chairman Hiroshi Okuda in May.

LATEST BUSINESS STORIES

Michael Calvey, founder of private-equity firm Baring Vostok Capital Partners, sits in a security booth during a hearing at the Basmanny District Court in Moscow Feb. 16. A Russian court ruled that Calvey, one of the country's longest-standing American investors, should be held in custody for nearly two months in an embezzlement case.
Russia charges top U.S. investor Michael Calvey with fraud; Washington hits denial of access
Russian state prosecutors on Thursday formally charged top U.S. investor Michael Calvey, the founder of the Baring Vostok private equity group, with fraud, hours before Washington accused Moscow of...
Duke's Zion Williamson sits on the floor following a injury during the first half of an NCAA college basketball game against North Carolina, in Durham, North Carolina, Wednesday. Duke might have to figure out what the Zion Show will look like without its namesake — all because of a freak injury to arguably the most exciting player in college basketball. As his Nike shoe blew out, Williamson sprained his right knee on the first possession of what became top-ranked Duke's 88-72 loss to No. 8 North Carolina.
Nike in damage control after basketball star's shoe shreds in marquee game
Nike was in damage control mode on Thursday after US college basketball phenomenon Zion Williamson suffered a knee injury when his shoe shredded during a marquee game attended among others by Barac...
Liang Hua, chairman of Huawei's board of directors, attends a media roundtable event in Toronto Thursday. Britain can handle the security risks involved with using mobile networks made by China's Huawei, the cybersecurity chief said Wednesday, adding to a growing debate among countries on whether the company should be banned, as the U.S. wants.
Huawei will provide 'global and comprehensive' plan to address British security fears in first ha...
Huawei will present a plan to address British security concerns about its equipment by the end of the first half of this year, a senior company executive said on Thursday, following criticism the C...