Canon reports second-quarter results

Canon forecast sales will drop 22 percent this year as the global recession drives down demand for all its major products. The company said it will introduce new digital cameras and inkjet printers to help weather the slowdown. Canon’s operating profit, or sales minus the cost of goods sold and administrative expenses, slumped 72 percent to 44.9 billion yen as revenue dropped 28 percent.

Canon trimmed its sales estimate for the year ending Dec. 31 by 3.9 percent to 3.2 trillion yen, while maintaining its April forecast for 110 billion yen annual net income. It raised the operating-profit projection by 5.6 percent to 190 billion yen, citing cost savings. Profit at the camera operations, Canon’s second-biggest division, dropped 42 percent to 38.8 billion yen.