By Megumi Fujikawa
TOKYO--Canon Inc.'s (7751.TO) net profit rose 6% in the October-December period, as a weaker yen enhanced the value of overseas earnings, outweighing the effect of falling demand for digital cameras.
The Japanese office-equipment and camera maker said its net profit increased to Y68.09 billion ($578 million), from Y64.25 billion in the same period last year. Sales rose 2.4% to Y1.060 trillion from Y1.035 trillion.
The improved quality of smartphone cameras has hit Canon and other digital camera makers. Canon said imaging system sales, which include digital cameras, fell 3.4% during the fourth quarter, as consumers increasingly relied upon smartphones rather than compact digital cameras for taking snap shots.
Supporting Canon's bottom line was the weaker Japanese currency. A weaker yen makes Japanese products more price competitive overseas and increases the value of profits when converted back into yen. Canon generates about 80% of its revenue outside Japan.
For the full fiscal year ended in December, the company reported a 10.5% increase in net profit to Y254.80 billion on revenue of Y3.727 trillion. The net year figure beat a company forecast of Y250 billion.
For the current business year Canon forecasts the dollar to average Y120 and the euro Y135.
For the current business year Canon forecasts a net profit of Y260 billion on revenue of Y3.9 trillion. It sees the dollar averaging Y120 and the euro Y135 in the 12-month period.
Canon's earnings are based on U.S. accounting standards.
Write to Megumi Fujikawa at email@example.com
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