Canon weathers Japanese storms
Profits, turnover up
Canon showed few signs of being affected by the recession in Japan as it turned in a 10 per cent increase in its gross profits for the first half of its 1998 financial year. The company managed to weather the storm by selling additional printers and peripherals in the US market, although its own domestic market remained weak, it said. The company turned in pre-tax profits of 85.7 billion yen on turnover of 805.7 billion yen, and said that demand for the peripherals it sells rose by 16 per cent, while sales of other IT equipment rose by 12 per cent. It also recorded an increase in camera sales of 13 per cent. According to Canon, the weak state of the yen against the dollar allowed it to make gains of 43 billion yen, and also allowed it to make price reductions on its products. The company predicted that it will make gross profits for the year of 168 billion yen, but that additional tax it will have to pay will reduce its net profits.