Canon Inc. (CAJ), a maker of printers and digital multifunction devices, Thursday reported a decline in fourth-quarter profit despite higher sales, hurt by a significant rise in operating costs. The company, however, expects year-over-year growth in earnings and sales for fiscal 2011.
Fourth-quarter net income attributable to the company was 53.96 billion yen or $666.16 million, compared with 61.56 billion yen last year.
Net sales grew to 1.07 trillion yen from 954.06 billion yen in the prior-year quarter. In dollar terms, net sales were $13.18 billion for the latest quarter.
Based on the company's business units, sales of the office segment rose 18.1 percent to 549.28 billion yen as demand for network digital multifunction devices recovered, mainly for color models, along with a demand rebound for laser printers.
Consumer segment sales totaled 412.24 billion yen, relatively flat with the prior-year quarter. Even though the demand for digital single-lens reflex cameras maintained healthy growth across global markets, sales of compact digital cameras were sluggish in developed countries. Further, demand for inkjet printers continued on a recovery track, the company noted.
In the Industry and Others segment, sales were 131.93 billion yen, an increase of 27.7 percent from a year ago. The segment saw steady demand growth for semiconductor lithography equipment and liquid crystal display lithography equipment, due to improved investment by the manufacturers of semiconductor devices and LCD panels.
Domestic sales edged up 0.3 percent, while overseas sales rose 15 percent, reflecting strong sales growth in Americas, Europe and Asia and Oceania.
Operating expenses climbed to 409.4 billion yen from 341.66 billion yen in the fourth quarter 2009, reflecting higher selling, general and administrative expenses and research and development costs.
Going forward, Canon projects full-year 2011 net income attributable to the company of 310 billion yen or $3.83 billion, an increase of 25.7 percent year-on-year. Consolidated net sales for fiscal 2011 are projected to rise 10.6 percent from 2010 to 4.1 trillion yen or $50.62 billion yen.
The company also stated that emerging nations such as China and India are expected to maintain healthy expansion.
Further, the company said it plans to distribute a full-year dividend totaling 120 yen per share, an increase of 10 yen per share compared with fiscal 2010.
CAJ closed Wednesday's trading at $50.07 on the NYSE.
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