Canon face downwards its forecast for economic gloom - Clubic.com

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Posted by Ludwig Gallet Thursday, October 24, 2013

Helped by the Yen and a bad third quarter of 2012, Canon announced an increase in its results over the year. But the firm has lowered its annual forecast because of the sluggish market.

Canon has reported results (. Pdf) up to a year for the third quarter. As in the three months before, the global leader in camera does not shirk the role played by the depreciation of the yen against the dollar to explain this trend. For the quarter ended at the end of September, the Japanese has reported an increase in its turnover by 14% to $ 9.3 billion. At the same time, profits also jumped 17% to $ 600 million. In operational terms, Canon can rejoice jumped the result of 27.8% year on year, to $ 924 million. A trend that Canon has also a very weak quarter last year.

For the activity shows a decrease from one quarter to another, both in terms of sales and profitability. Canon also returns to the weak market in the world, while spending in the United States slow to return despite a rather positive trend. In Europe, Canon identifies a particular slowed the austerity market. Not to mention the slowdown in Chinese growth and low growth seen in other Asian countries because of the weakness of local currencies. Stimulus for Japanese exports have thus helped to partially offset this situation.

On the camera market, the trend is much the same as the second quarter. If the range of Reflex is doing quite well, compact cameras suffer in contrast to a persistent decline, increasing competition from smartphones more efficient in the photo. However, the photo division rose 8.2% year on year to 3.6 billion dollars. This means a decrease compared to the second quarter of 2013, 5.3%. The office segment (printers, scanners, etc.) follows the same trend, surging 20.6% year on year, not to exceed sales in the second quarter.

Canon is rather pessimistic for the fourth quarter . The Japanese automaker believes that the negative trend experienced between the second and third quarter of the year is expected to continue at the end of the year, revising downward its initial projections. Even Reflex no exception to the rule, with declining sales prospects 9 million copies to 8,000,000 at the end of 2013. Sales for 2013 are now estimated at $ 38.5 billion, while the company was counting on previous sales of $ 39.5 billion.