Canon Inc. said Thursday that it will reduce its full-year profit and sales predictions because a stronger yen has eroded the value of its exports.
Net income for Japan's biggest office equipment maker will probably climb 2.4 percent to ¥500 billion in 2008, compared with a previous forecast of ¥520 billion, the company said. Sales may rise 2 percent to ¥4.57 trillion, less than the earlier predicted ¥4.72 trillion.
The Tokyo-based company is forecasting its slowest annual profit growth in nine years after the yen surged to a 12-year high last month on concern the U.S. economy is headed for a recession. Canon, which gets about 80 percent of its revenue from overseas, expects the yen to extend gains this year.
Operating profit, or sales minus the cost of goods sold and administrative expenses, will probably rise 1.8 percent to ¥770 billion, falling short of the company's earlier goal of ¥800 billion.
The median of 16 analyst estimates compiled by Bloomberg was for net income of ¥489 billion. Analysts expected sales of ¥4.63 trillion and operating profit of ¥757 billion.