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Canon posts robust H1 profit on digital devices
REUTER
Tokyo, Aug 8: Canon Inc, Japan's biggest camera maker, scored a robust growth for the first half of 2000, backed by brisk sales of computer-related devices. The company, which is also a leading maker of PC printers, reported a group net profit of 68.48 billion yen ($627.6 million) for the six months to June, more than double its group net profit a year earlier. It attributed the strong gains to sales of printers and digital copying machines, aided by a sharp rise in the number of Internet users, while sales of digital cameras jumped due to launches of new products.The larger profit also came from sales of semiconductor manufacturing equipment, helped by aggressive capital investment in chip makers amid an upturn in the semiconductor memory market. The upbeat sales more than offset the negative impact of the yen's strength on its exports. Some 70 percent of group revenue came from abroad. The yen traded 11 percent higher against the dollar and 26 percent higher against the euro for the six months than a year earlier, Canon said. Bright forecasts for devices related to information technology (IT) led Canon to announce last month a net group profit forecast of 125 billion yen for the full year to December, up 78 percent from its actual profit last year. Aiming to boost management efficiency as a group and meet fierce competition, Canon also said it will make Canon Chemicals Inc a wholly owned unit through an equity swap on November 7, with one Canon Chemicals share exchanged for a 0.25 Canon share. Canon currently owns 67.23 percent of Canon Chemicals, which makes toner cartridges and key parts for laser printers, copiers and fax machines. The announcement came after the Tokyo stock market closed. Earlier in the day, Canon shares ended 0.88 per cent higher at 4,560 yen. Canon Chemicals rose 9.68 percent to 1,360 yen. Copyright © 2000 Indian Express Newspapers (Bombay) Ltd.
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