TOKYO, July 24 Japan's Canon Inc
lowered its full-year profit forecast by 16 percent from its
outlook three months ago and cut its sales targets for both
high-end and compact digital cameras as growth in China and
other emerging economies loses steam.
Canon, the world's largest maker of digital cameras, had
already seen sales of its compact cameras hit as consumers
increasingly use smartphones to take photos.
The company expects an operating profit of 380 billion yen
($3.81 billion) for the year to December, down from 450 billion
yen it forecast in April. Analysts' average full-year operating
profit forecast is 448.3 billon yen based on a survey of 23
analysts by Thomson Reuters I/B/E/S.
For the April-June quarter, Canon's operating profit rose
6.2 percent to 98.3 billion yen, exceeding the 95.9 billion yen
average profit forecast from seven analysts.
Canon's shares have risen about 40 percent during an
eight-month rally fuelled by the reflationary economic policies
of Prime Minister Shinzo Abe, underperforming a 70 percent rise
in Tokyo's benchmark Nikkei average but outpacing a 26
percent gain for rival camera maker Nikon Corp.
Canon closed 0.3 percent higher on Wednesday before the
earnings announcement, compared with the Nikkei's 0.3 percent