Canon Bracing for Lower Sales, Profits

Economy

Tokyo, July 28 (Jiji Press)--Canon Inc. <7751> said Tuesday it expects lower group sales and profits this year due to the fallout from the coronavirus pandemic.

Sales of multifunctional printers are weak due to office closures related to the pandemic. Demand for cameras with interchangeable lenses is also sluggish as people have been staying at home to avoid infections.

The company forecasts sales for the year ending in December at 3.08 trillion yen, down 14.3 pct from the previous year, and net profit at 43 billion yen, down 65.6 pct. Operating profit is projected at 45 billion yen, down 74.2 pct.

Canon "expects earnings to start picking up in the second half of the year, though at a moderate pace," Chief Financial Officer Toshizo Tanaka said at a conference call.

The pandemic is estimated to push down Canon's annual sales by some 480 billion yen and operating profit by about 170 billion yen, he said.

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