Profits, Sales Forecast to be Down for Canon’s Last Six Months
The Nikkei Asian Review forecast today that operating profit generated by Canon Inc. of Tokyo, Japan, is “on track to sink 40 percent this year to slightly over 200 billion yen ($1.85 billion).” Nikkei says the decline will be due to a a slowing European economy and a slumping chip market.
According to Nikkei, Canon’s profits for its fiscal year that will end on December 31, 2019 will fall roughly 60 billion yen short of its downgraded guidance in April 2019. It says Canon’s “sales likely will shrink 6 percent to a figure above 3.7 trillion yen, off about 100 billion yen from April’s forecast.”
Nikkei says that a slowing economy in Europe has resulted in European companies delaying investments, including investments in office-imaging equipment. The depreciation of the euro against the Japanese yen may also cut into Canon’s profits.
Slowing demand for chips used in data centers and smartphones may also affect Canon’s profits, as it may soften demand for Canon’s chip-making equipment.
Last, a declining camera market may also hurt Canon, with, for instance, global shipments of digital cameras down 24 percent year-over-year, according to the Tokyo-basedCamera & Imaging Products Association.
Overall, Nikkei forcasts Canon to report a first-half operating profit of around 80 billion yen, down 50 percent from a year earlier, with sales sliding 10 percent to roughly 1.7 trillion yen.
Canon will report on its performance for the first half of its fiscal year present next week
- April 2019: Double-Digit Decline in Sales, Net Income for Canon’s First Quarter
- April 2019: Canon Leader in U.S. Copier/MFP Market
- March 2019: Canon Touts Financial Stability, Production Printing
- January 2019: Mixed Bag of Financial Results for Canon’s Fourth Quarter, Full Year
- October 2018: Canon Reports Third-Quarter Results, Lowers Forecast
- May 2018: Canon to Bolster Video Business with Briefcam Acquisition