Wednesday, January 28, 2009
Sale of Ikon Sinks Canon Stock last quarter.
Canon falls 81% in profit from the last quarter!
My thoughts, at least for here in the US is that the last quarter was the straw that broke the camels back. I'm thinking it took one quarter for Ikon to sell of the remaining Canon stock of hardware, so the demise really took hold in the 4th quarter with no orders from Ikon for hardware. I'm also sure all of the reps are trying to get everyone out of the Canon units as soon as possible and thus there would be a drop in revenue for parts and supplies.
(Pictured above is the new Superstore )
I am surprised that there has been no major move from Canon, especially with reports that OCE is struggling! Canon buying OCE, hey, we've seen stranger things happen in the last 18 months. Other than giving a Canon dealership to any dealership that is breathing and the purchase of Newcal, Canon has remained quite.
The purchase of Ikon by Ricoh finally took its toll?
Tokyo: Japan's Canon Inc reported an 81.5 per cent fall in quarterly profit as a deepening recession hit demand for cameras and office equipment, and it forecast a bigger-than-expected profit decline for 2009.
Operating profit at Canon, the world's largest digital camera maker ahead of Sony Corp and Nikon Corp, came in at 35.8 billion yen ($401.7 million) in October-December, down from 193.58 billion yen a year earlier.
Canon's profitability was also hit by steep price falls and the strength of the yen, which makes Japanese products less price-competitive overseas and eats into exporters' revenues when converted into the Japanese currency.
For 2009, Canon forecast an operating profit of 160 billion yen, down from 496.1 billion yen a year earlier and compared with the consensus forecast for a 309.8 billion yen profit in a poll of 16 analysts by Reuters Estimates.
Shares in Canon, which competes with Xerox Corp and Ricoh Co Ltd in copiers and printers, lost 47 per cent over the past year, compared with a 49 per cent fall in the Tokyo market's electrical machinery index.