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UPDATE 2-Canon Q3 operating profit likely halved -Nikkei

Thu Oct 22, 2009 9:47pm EDT

Stocks

   

* Q3 operating profit seen at 60 bln yen -Nikkei

* Nikkei figure roughly in line with analysts' consensus

* Shares down 0.6 pct vs 0.6 pct gain for broader market (Adds share price, company comments)

TOKYO, Oct 23 (Reuters) - Canon Inc's (7751.T) quarterly operating profit likely halved from the previous year, as a stronger yen and sluggish sales of copiers and laser printers weighed on its earnings, the Nikkei newspaper said on Friday.

But the business daily also said that Canon, the world's largest digital camera maker ahead of Sony Corp (6758.T), is unlikely to change its annual forecast despite having to grapple with a stronger yen than it first estimated.

The company is set to have earned 60 billion yen ($657 million) in July-September, up 30 percent from the previous quarter thanks to solid sales of high-end digital cameras, but down from the previous year's 129.3 billion yen, the paper said.

The yen's appreciation and sluggish sales of toner cartridges and other consumables have dragged down Canon's profit, despite brisk sales of its recently launched EOS Kiss X3 camera and cost cuts, the paper said.

Canon has forecast a 60 percent fall in annual operating profit to 190 billion yen ($2.1 billion).

Both the reported quarterly and annual figures would be in line with consensus estimates polled by Thomson Reuters I/B/E/S.

A Canon spokeswoman declined to comment on the report.

The Nikkei also said Canon may revise its assumed dollar/yen rate for the October-December quarter to 90 yen from 95 yen, it said.

Shares in Canon edged down 0.6 percent to 3,630 yen, underperforming the Nikkei average .N225, which gained 0.6 percent.

Canon, which competes with Xerox Corp (XRX.N) and Ricoh Co Ltd (7752.T) in copiers and printers, is set to report its quarterly results on Oct. 27. (Reporting by Mayumi Negishi and Kiyoshi Takenaka; Editing by Edwina Gibbs)



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