Canon's profits are up, despite falling sales numbers.
Canon announced today that they are recording an increase in profit despite lower sales because of a strong Yen. Total sales for Canon last quarter were around $2.5 billion, down 8.3%. However, when currency effects are taken into account, that is actually a 6.2% profit. Canon is placng the increased profit not only on lowering manufacturing and operating costs, but the fact that D-SLRs, which are more profitable than compact point and shoot cameras, have shown solid growth.
This announcement comes on the heels of Kodak has suffered a 49% sales decline in the business division that includes its line of compact cameras in the third quarter. "Continued declines in consumer spending have had significant impacts in the company's digital camera and digital picture frame businesses," the company said. And although camera sales are down, injet printer and ink sales shot up 92%; leading to an overall growth in the business. However the posted $89 million loss is not a good trend, especially compared to a $24 million profit in the same time last year.
With the predictions about this coming Christmas season looking grim, we'll see how the camera companies will fare. Traditionally during harder economic times, camera sales stay fairly constant as folks don't have a whole lot of free money, but they still want the ability to record life as they are living it.