Canon quarterly results claim net income dropped by a third
updated 12:48 pm EDT, Thu October 25, 2012
Stagnant global economy blamed for lower demand
Canon has seen its net income go down by more than a third, according to the company's third quarter results. Revenues dropped to $10.3 billion, a fall of 13 percent compared to last year's results, with the continued low demand of the company's products claimed to be the main culprit. Demand for compact cameras have stalled, with the "stagnation of the global economy" receiving the blame.
Cameras with interchangeable lenses were growing sales in "all regions," though sales of the EOS Digital Rebel and the 5D Mark III were lagging behind. While DSLRs and similar are predicted to increase in demand, compact cameras will need a "high added value" if customers are to pay for the devices.
Demand for laser printers has relatively maintained its current rate of sales, and while inkjet sales went down, multifunction printers rose. Predictions suggest the multifunction printers to continue rising in Japan and the US.
While the company revenues have lowered, it is seeking to improve profits by relying more on robotics. A $4.8 billion production plan is being implemented with the aim of countering the negative impact the strength of the Yen, which is impacting profits by a fair amount.
The company has cut its full year outlook based on its results, with the full year expected to see a decline in net income of almost six percent compared to the previous term.
