Canon Marketing Recommendations
Canon cuts profit forecast on first annual drop in high-end camera sales
24 October 2013
Link: http://news.yahoo.com/canon-cuts-profit-outlook-camera-slump-drags-062539163--finance.html
TOKYO (Reuters) - Japan 's Canon Corp cut its operating profit outlook for the second quarter in a row, below analysts ' estimates, warning that sales of its signature high-end cameras will fall this year for the first time since their launch in 2003.
The world 's largest camera maker said it now sees global economic gloom squeezing sales of its digital interchangeable-lens cameras to 8 million through December from 8.2 million last year. Demand from camera buffs will stay weak in Europe, and fail to recover as quickly in China as Canon had expected. While the company 's point-and-shoot digital camera sales have been hit in recent years as consumers increasingly use smartphones to take casual shots, the high-margin interchangeable-lens format favoured by professional photographers and enthusiasts has seen growth every year up to 2012, company officials said.
Despite a rebound in operating profit for July-September from a weak quarter a year earlier, Canon lowered its full-year operating profit forecast to 360 billion yen ($3.70 billion). That compares with an average of 378.5 billion yen based on 23 analysts ' estimates according to Thomson Reuters Starmine. "Until recently, interchangeable-lens sales ' growth was close to double figures even when the economy was bad. But now people are postponing consumption of luxury items such as cameras," Chief Financial Officer Toshizo Tanaka said during a briefing in Tokyo, adding that consumers had become more sensitive to price.
In July, predicting a pickup in China in the second half of the year, the company forecast operating profit would be 380 billion yen, compared with 324 billion yen for 2012. Tanaka said protracted gloom in Europe was half of the reason for the downward revision. Canon said it now sees sales of the digital
24 October 2013
Link: http://news.yahoo.com/canon-cuts-profit-outlook-camera-slump-drags-062539163--finance.html
TOKYO (Reuters) - Japan 's Canon Corp cut its operating profit outlook for the second quarter in a row, below analysts ' estimates, warning that sales of its signature high-end cameras will fall this year for the first time since their launch in 2003.
The world 's largest camera maker said it now sees global economic gloom squeezing sales of its digital interchangeable-lens cameras to 8 million through December from 8.2 million last year. Demand from camera buffs will stay weak in Europe, and fail to recover as quickly in China as Canon had expected. While the company 's point-and-shoot digital camera sales have been hit in recent years as consumers increasingly use smartphones to take casual shots, the high-margin interchangeable-lens format favoured by professional photographers and enthusiasts has seen growth every year up to 2012, company officials said.
Despite a rebound in operating profit for July-September from a weak quarter a year earlier, Canon lowered its full-year operating profit forecast to 360 billion yen ($3.70 billion). That compares with an average of 378.5 billion yen based on 23 analysts ' estimates according to Thomson Reuters Starmine. "Until recently, interchangeable-lens sales ' growth was close to double figures even when the economy was bad. But now people are postponing consumption of luxury items such as cameras," Chief Financial Officer Toshizo Tanaka said during a briefing in Tokyo, adding that consumers had become more sensitive to price.
In July, predicting a pickup in China in the second half of the year, the company forecast operating profit would be 380 billion yen, compared with 324 billion yen for 2012. Tanaka said protracted gloom in Europe was half of the reason for the downward revision. Canon said it now sees sales of the digital
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