Canon Inc., the world’s biggest maker of multifunction printers, reported second-quarter profit declined 86 percent on slumping demand for copiers and printers.
Net income dropped to 15.6 billion yen ($164 million) in the three months ended June 30, from 107.8 billion yen a year earlier, the Tokyo-based company said today. That missed the 18 billion yen median of three analyst estimates compiled by Bloomberg News , Bloomberg reports.
However, Canon's operating profit came in at 44.91 billion yen in April-June, down from 160.15 billion yen a year earlier, but that was up from a 20 billion yen profit in the previous quarter, in a sign Canon's quarterly earnings may have bottomed out.
Prior to the announcement, shares in Canon closed down 0.3 percent at 3,370 yen, outperforming the Tokyo stock market's electrical machinery index .IELEC.T, which fell 1 percent ,Reuters reports.
Meanwhile, Canon Inc. will spend roughly 25 billion yen ($262.6 million) on streamlining design and product data systems in 2010 in order to save more than 100 billion yen over three years, according to a report Tuesday.
The Japanese business daily Nikkei reported that the electronics manufacturer will consolidate its two computer-aided design systems, and standardize systems for managing product data.
In addition, data for design and development will be shared among divisions overseeing production preparations, prototypes and output control, the report said , MarketWatch reports.
US and Chinese experts believe that the Sukhoi Checkmate aircraft will become competition to their F-35 and FC-31 fighter jets in the arms market.