Business / Corporate

Canon's first quarter net profit drops 30%; 2020 outlook withdrawn

Kyodo

Canon Inc. said Thursday its net profit dropped 30.0 percent in the first quarter through March as it withdrew its full-year earnings outlook due to economic uncertainty caused by the coronavirus pandemic.

The digital camera and office equipment-maker said its net profit in the first three months fell to ¥21.91 billion ($203 million), on sales of ¥782.31 billion, down 9.5 percent from a year earlier.

"The impact became increasingly evident as the spread of the virus has disrupted supply chains and deteriorated consumption," Executive Vice President Toshizo Tanaka said in a telephone news conference.

Tanaka said sales of office equipment such as photocopiers fell as many people around the world are staying at home to prevent the further spread of the virus, adding demand for digital cameras was sluggish on the back of countless event cancellations.

The Tokyo-headquartered company had initially projected a net profit of ¥160 billion for 2020.

It said the market for digital cameras and other expensive products would likely take time to recover after the pandemic subsides.

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