Canon 2003 Group Pretax Profit Y448.2 Billion Vs Y330.0 Billion -5
[Dow Jones and Company, Inc.]
Dow Jones News Service via NewsEdge Corporation : The Japanese precision equipment maker said it expects another record net profit this year.

For 2004, Canon projects a group net profit of Y286 billion, up 3.7%. It expects group operating profit to rise 2.3% to Y465 billion this year, on a 4.1% increase in group revenue to Y3.330 trillion.

For this year, Canon estimates its digital camera sales will come to 15 million units, up sharply from 8.6 million units in 2003.

Canon said it expects the dollar to average Y105 and the euro Y130 for 2004.

Canon’s senior managing director, Toshizo Tanaka, said the company needs the dollar to trade between Y100 and Y105 to achieve profit growth this year.

“It would be difficult for us to lift profits if the yen becomes stronger than that,” Tanaka said.

Last year, Canon benefitted from its focus on a limited number of high-margin products, such as digital multifunction copiers and high-performance digital cameras, as well as from cost cuts at its manufacturing operations.

Among these products, the “EOS Kiss Digital,” a single-lens reflex digital camera designed for general users, sold well in Japan though the model is relatively expensive compared with compact-type digital cameras.

In the October-December quarter, Canon’s group net profit rose 25% to Y74.96 billion from Y60.07 billion a year ago, with group revenue growing 3.9% to Y894.89 billion from Y861.66 billion.