Japan's Canon 2006 net profit hits record on digicam, printer sales - UPDATE |
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Mon, 29 Jan 2007 08:27
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TOKYO (XFN-ASIA) - Canon Inc made a record-breaking net profit for last year, amid the popularity of its digital cameras and printers, the company said.The company posted a net profit of 455.32 bln yen for last year, against 384.1 bln yen for 2005.Its operating profit rose 21.3 pct to a record 707.03 bln yen as revenue increased 10.7 pct to a record 4.16 trln yen.In October, the maker of digital cameras and office equipment had projected net profit of 440 bln yen, pretax profit of 700 bln yen and operating profit of 691 bln yen on revenue of 4.14 trln yen.Canon senior managing director Toshizo Tanaka told a press conference: 'Sales and all profits registered the seventh straight year of rises, hitting records, driven by strong demand for our digital cameras, laser printers and color copiers.'Canon sold 21.1 mln digital cameras last year, 25 pct more than in 2005. It sold 18.6 mln compact digital cameras, about 3.6 mln more than in 2005, and 2.5 mln single lens reflex (SLR) digital cameras, about 600,000 more than in 2005.'As global demand for digital cameras grew in almost all regions, we released 18 new models, which helped us to achieve sales of over 1 trln yen in the camera division alone for the first time ever,' Tanaka said.'By continuing to release attractive models, we are aiming for a higher market share,' he said.Canon aims to sell 24 mln digital cameras this year, comprising 21 mln compact digital cameras and 3 mln SLR digital cameras.'A weak yen also served as a key growth driver, while strenuous cost-cutting and the greater use of automation lent additional support,' Tanaka said.Canon said the weak yen had added 78 bln yen to its operating profit and cost reduction had added 119 bln yen.The operating profit of its camera division surged by 55 pct to 268.7 bln yen, and that of tits office equipment division rose by 10.6 pct to 599.2 bln yen.The company forecasts another record-breaking year this year, projecting net profit of 495 bln yen and operating profit of 765 bln yen on revenue of 4.45 trln yen.'The pace of growth is expected to moderate somewhat in the current year, as we expect the yen to firm somewhat against the US dollar because of narrowing interest rate differentials,' Tanaka said.Canon forecasts that the dollar will average 115 yen this year, having averaged 116.43 yen last year. The company said that every single yen by which the Japanese currency appreciated against the dollar could reduce its annual operating profit by some 9 bln yen.(1 usd = 121.77 yen)Yasuhiko.Seki@xfn.com
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Canon 2006 net profit hits record on brisk sales of digicams/printers 