Canon slashes full-year profit forecast

LONDON: Japanese camera maker Canon Inc on Monday slashed its profit forecast for the full year as the appreciating yen hit the firm's overseas revenues.

Further, Canon today reported a 21 per cent decline in net income at 83.04 billion yen for the third quarter ended September 30, 2008.

The firm had a net income of 105.30 billion yen in the corresponding period a year ago.

Meanwhile, Canon has revised its net income forecast to 375 billion yen for the year ending December 31, 2008, the firm said in a statement today.

Earlier, it had projected a net income of 500 billion yen for the full year.

For the same period, the company anticipates net sales to the tune of 4.25 trillion yen compared to the earlier projection of 4.59 trillion yen.

According to the statement, the firm anticipates "exchange rates for the quarter of 100 to the US dollar and 135 to the euro, representing a year-on-year appreciation of approximately 13 per cent against the US dollar, and about 21 per cent against the euro."

"...while some degree of growth in such emerging markets as Asia and Russia is expected to continue, fourth-quarter business performance in developed countries is expected to be lacklustre, and considerable time will be required to remove the sense of financial insecurity and realise an economic recovery," Canon noted.

The camera maker reported a net income of 297.52 billion yen for the nine months ended September 30, 2008.