Japan's Canon cuts 2010 net profit target by 75 pct

Published: 11 Mar 2009 18:54:35 PST

TOKYO, March 12 - Japan's Canon Inc cut its profit target for 2010 by three quarters to account for tumbling demand for its cameras and copiers as the global economic crisis hits its major export markets.

It now expects net profit of around 150 billion yen ($1.5 billion), although that is a 53 percent rise from its estimate for this year and better than a consensus of 141 billion yen from 14 analysts polled by Reuters Estimates.

Canon, the world's largest digital camera maker ahead of Sony Corp, posted its first annual profit decline in nine years in 2008 due to slumping demand and a firmer yen.

It now expects revenues to grow only 6 percent in 2010 to 3.7 trillion yen, compared with its previous target of 6 trillion yen.

Canon's shares rose 1.5 percent at 2,310 yen, while the Nikkei benchmark average fell 1.1 percent.

It unveiled the new targets at a meeting with analysts and investors on Wednesday.