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Canon Posts Lower Profits, Higher Sales

4/26/2011 04:06:03 PM Eastern
Tokyo - Canon reported lower net profit but higher net sales in its fiscal first quarter ended March 31.

Net profit was down 2.4 percent to $668.2 million and operating profit was down 5 percent to $994.0 million, compared with the prior year's first quarter.

Net sales were $10.1 billion in the quarter, up 11.1 percent.

In its consumer segment net sales were $3.49 billion, down 0.2 percent for the quarter compared with the prior year and operating profit was down 15.7 percent to $480.8 million.

Canon did say that the the earthquake in northeastern Japan will create shortages in the supply capacity for certain products and "are expected to continue, for the time being," Canon said in a statement.

 Canon said it "has been directly affected by the earthquake including losses from damaged buildings and inventory, and has incurred such indirect effects as electricity restrictions, supply shortages of components and a decline in consumer spending in the Japanese market. These factors and others would negatively affect Canon's operating results and financial position."

Worldwide Canon said fuel prices and financial crises in Europe will have a negative effect, but "China and India, and other emerging markets are expected to continue to realize healthy growth; the United States is projected to maintain its upward momentum; and major European markets will continue to grow steadily.
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