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Canon cuts outlook due to Thai floods

Wednesday, October 26, 2011 - 01:21

Oct. 26 - Cameramaker Canon becomes the first major Japanese company to cut its earnings forecast due to floods in Thailand, a move that does not bode well for rivals Sony and Nikon. Toshi Maeda reports.

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The world's biggest digital camera maker, Canon, has become the first major Japanese firm to cut its earnings outlook, because of floods in Thailand. With the country a major manufacturing base for Japan's high-tech sector, the news clouds the outlook for Canon's rivals, Sony and Nikon, as well. Both Sony and Canon are seen as having been hit harder by forced plant closures in Thailand. Nikon's factory at Ayutthaya has been closed for 3 weeks, while Sony has delayed camera launches because of the floods. Nikon and Sony are due to announce earnings next week. Analysts say the impact on Canon was relatively mild, and the firm's shares rebounded to close higher, after falling as much as 2 percent in early trade. Canon cut its annual operating profit forecast by 5 percent to $4.7 billion, blaming a combination of Thai floods and a strong yen. The company says that with camera parts suppliers flooded in Thailand, year-end sales were bound to be affected. Canon has also been forced to close an inkjet printer plant in the country. Toshi Maeda, Reuters.

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Canon cuts outlook due to Thai floods

Wednesday, October 26, 2011 - 01:21