Business / Corporate

Canon cuts profit estimates for third time on weak China sales

Kyodo

Canon Inc. on Monday lowered its earnings estimates for 2019 for the third time due to weak demand for cameras and printers in China and Europe.

Canon now expects its group net profit to fall 44.6 percent from the previous year to ¥140 billion ($1.3 billion). In July, it projected ¥160 billion in profit.

Its projections for operating profit and sales were also cut, with the company expecting them to be down by 45.2 percent and 8.3 percent, respectively, to ¥188 billion and ¥3.63 trillion.

The downgrading was due to the shrinking market for single-lens reflex cameras and sluggish sales of its ink-jet printers worldwide, affected by the prolonged U.S.-China trade conflict, it said. A stronger yen against the dollar and the euro also hurts its overseas profits when repatriated.

Brisk performance by its medical equipment division would partly offset the negative fallout. Canon said it expects a turnaround for its businesses next year as a result of cost-cutting efforts and a possible rebound in the semiconductor industry.

For the nine months through September, Canon’s group net profit plunged 49.0 percent from a year earlier to ¥92.35 billion. Operating profit tumbled 49.9 percent to ¥122.00 billion on sales of ¥2.64 trillion, down 8.8 percent.

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