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Japanese camera maker, Canon Inc's profits increased by record levels largely due to growing popularity of its digital cameras and printers, as the company forecasted the slowest growth for the next year. Canon reported a net profit of 455.3 billion yen, an 18.5 percent increase from 384 billion during the same period last year. This is the seventh successive year that profits have increased by record levels from the Japanese electronic giant. Operating profit rose by 21.3 percent to 707 billion yen with 78 billion yen due to the lower yen. Speaking in a news conference, Toshizo Tanaka, a Canon executive in charge of finances said that one of the main reasons for the slow growth forecasted this year was largely due to lack of currency impact. "The biggest reason why we expect single-digit growth this year is because of the lack of currency impact. But the good business environment won't change", he added. Fourth quarter profits increased by 15.7 percent to 195.9 billion yen, narrowly beating analysts' of 195.5 billion. The surface-conduction electron-emitter display (SED) venture controversy with Toshiba not withstanding, Canon revealed that it is committed to the production of the screens.
"Even with the change of plan, we still see SED as an important new business. Our plan to start selling TVs in Japan during the fourth quarter is unchanged, but we still don't have a plan for mass production. To begin, we will be using our pilot Hiratsuka plant", Tanaka said. The company has projected the net profit for this year at 495 billion yen, a 8.7 percent increase from last year. However this will be the slowest growth in profits since 1999. Says Hideyuki Ookoshi, from Chiba-Gin Asset Management Co. in Tokyo, "It's not surprising that growth is becoming less impressive as the scale gets bigger. The earnings results may also differ from forecasts significantly depending on currency fluctuations."
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