Canon Suffers 1st Quarterly Loss amid Pandemic

Economy

Tokyo, July 28 (Jiji Press)--Canon Inc. <7751> on Tuesday reported a group net loss of 8.8 billion yen for April-June due to the fallout from the coronavirus pandemic, suffering the first red figure on a quarterly basis since it started earnings disclosure in 2001.

The April-June loss came against a profit of 34.5 billion yen in the same period a year before, reflecting sluggish sales of office equipment and other products amid the pandemic.

In the second quarter of 2020, the company's sales slumped 25.7 pct from a year earlier to 673.3 billion yen, with sales of office machines weak as many people worked from their homes and demand for cameras sluggish amid stay-at-home restrictions around the world.

For the full year, the company forecast a net profit of 43 billion yen, down 65.6 pct from the previous year. Operating profit is projected at 45 billion yen, down 74.2 pct, and sales are estimated at 3.08 trillion yen, down 14.3 pct.

The company left year-end dividends undecided, while planning to halve half-year dividends to 40 yen a share, the first dividend decrease in about 33 years.

[Copyright The Jiji Press, Ltd.]

Jiji Press