Canon Inc. (7751.TO) said Monday its net profit slipped 1% in the July-September period, as the company continued to struggle with falling demand for digital cameras.
The Japanese office equipment and camera maker said its net profit decreased to Y58.249 billion ($540 million), from Y58.822 billion in the same period last year. Sales fell 4.5% to Y872.208 billion from Y913.149 billion.
The improved quality of smartphone cameras has hit Canon and other digital camera makers. Worldwide camera shipments were down 32% in the first eight months of this year from the same period last year, according to data by the Camera & Imaging Products Association in Tokyo.
Canon said imaging system sales, which include digital cameras, fell 9.4% during the third quarter, as consumers continued to use smartphones as cameras.
To differentiate itself from smartphone cameras, Canon is shifting its focus to higher value-added products.
For the full business year ending in December, the company now expects revenue of Y3.74 trillion, down from an earlier projection of Y3.78 trillion.
The company’s outlook is based on the assumption that the dollar will average Y108 and the euro Y137 for the rest of this year. Canon generates about 80% of its revenue outside Japan.
Canon’s earnings are based on U.S. accounting standards.