Canon Inc., Tokyo, Japan, reported consolidated net sales for the first half ended June 30, 2007 increased by 11 percent from the year-ago period to ¥2,166.7 billion (US$17,616 million), boosted by a solid rise in sales of digital cameras, color network MFDs, and laser beam printers, along with the positive effect of favorable currency exchange rates. Net income for the first half was ¥255.18 billion (US$2.07 billion), up 19 percent from ¥214.17 billion in the same last year.

Within the camera segment, demand for DSLR cameras and compact digital cameras continued to realize healthy growth during the term, says the company. Unit sales of digital cameras for the first half expanded nearly 20 percent compared with the year-ago period. As a result, overall camera sales for the first half increased by 12.9 percent from the year-ago period to ¥519.6 billion (US$4,224 million). The gross profit ratio for the camera segment also rose substantially, boosted by such factors as strong sales of newly introduced products, which served to suppress declines in prices, along with cost-reduction efforts realized through production-reform and procurement-reform activities. As a result, operating profit for the camera segment increased by 26.3 percent year-on-year to ¥137.3 billion (US$1,116 million).

Canon has revised upward its consolidated net sales forecast for the 2007 fiscal year to ¥4,580.0 billion (US$37,236 million), while revising downward its forecasts for consolidated income before income taxes and minority interests to ¥788.0 billion (US$6,407 million), and consolidated net income to ¥500.0 billion (US$4,065 million). These revisions assume an increase in depreciation expense of around ¥67.0 billion (US$545 million) as a result of the change in the accounting method used to estimate depreciation of fixed assets that was implemented from the second quarter of 2007.

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