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With growing demand for OLED equipment, Canon has raised annual profit forecast

Date:2017-10-24 17:15:39

Japan's Canon Inc raised its annual operating profit forecast on Tuesday, its third upward revision this year, on the back of expanding demand for organic light-emitting diode (OLED) screen production equipment.  

Canon, which also makes copiers, cameras and printers, forecast operating profit to rise 52.9 percent to 350 billion yen ($3.08 billion) for the year through December, up from the 330 billion yen estimated three months prior.   

The upbeat outlook came as Canon's third-quarter operating profit more than doubled to 80.46 billion yen ($708.90 million) against a year earlier. That beat a 69.43 billion yen average estimate of five analysts polled by Thomson Reuters.  

Demand for medical devices and network cameras - devices housing a lens, image sensor and processor in one unit - helped Canon's third-quarter operating profit more than double to 80.5 billion yen versus a year earlier even as demand for consumer cameras and printers shrank or remained flat.

Late last year Canon bought CT scanner and ultrasound equipment maker Toshiba Medical Systems from Toshiba Corp. The deal led the European Union to accuse the Japanese firm of breaching the bloc's merger rules. The EU has threatened to impose a fine of up to 10 percent of annual revenue.  

Foreign sales accounted for almost four-fifths of Canon's total revenue in the first nine months of the year, with the United States - its biggest market - accounting for over a quarter.

Like other Japanese imaging companies such as Fujifilm Holdings Corp and Konica Minolta Inc, Canon has in recent years looked to buy higher-growth "business-to-business" firms to help it expand beyond a global camera market under attack from increasingly sophisticated smartphones.