Canon Inc.’s quarterly net profit increases by 6%

Canon Inc. announced that its net profit increased by 6% in the three months that ended December 2013. The company explain this success has been facilitated by the fact that Japanese yen is weak, which makes the company hope its profits will be boosted in the current business year along with a recovery in its key markets.

The quarterly results of the company, as well as its expectations for future profit may be considered as indicators of the great influence, which the weaker yen has on the corporate Japan performance. About 80% of Canons revenue is generated outside Japan.

Canon Inc., which is a professional and consumer imaging solutions company and patent-holder of digital imaging technologies, reported that its net profit for the quarter from October to December 2013 increased from 61.17 billion yen to 64.25 billion yen. The companys revenue grew from 951.39 billion yen to 1.035 trillion yen, and its operating profit increased by 9% and reached 93.53 billion yen. Canon also reported a 2.6-percent-increase in its full business 2013 net profit, which was estimated to 230.48 billion yen.

According to a survey of 16 analysts compiled by data provider Quick, the results posted by the company are almost meeting with the consensus estimate for a 235.3-billion-yen net profit. Canon had estimated a profit of 240 billion yen for the just-ended business year.

Currently, Canon has been forced to face the influence of falling compact digital camera demand thanks to the fact that the improved quality of smartphone cameras has a quite negative impact on the sales of one of the companys main products. Canon Inc.s products include networked multifunction devices, digital and analog copiers, computer peripherals, facsimile machines, image filing systems, camcorders, cameras and lenses, semiconductor, and broadcast and medical equipment. The slowdown in some key markets such as the European and the Chinese one has also made its higher end cameras sales decrease.

The Chief Financial Officer of Canon – Toshizo Tanaka – said at a news conference cited by the Wall Street Journal: “We expect a recovery on the whole in our relevant markets.” A 4.1-percent-increase in net profit has been predicted by the company for the current fiscal year ending December. The company also expects to increase its operating profit by 6.7% to 360 billion yen, as well as to increase its revenue by 3.2% to 3.850 billion yen.

According to Bloomberg, the current share price of Canon Inc. is 0.69% up, and its one-year return rate is 4.78% down.