Canon cuts full-year forecast on rising yen

Canon Inc, the world's largest digital-camera maker, cut its forecast for full-year profit growth to the first decline in nine years as the surging yen undermined overseas sales.

Net income will probably fall 23 percent from a year earlier to 375 billion yen ($4 billion), less than the 500 billion yen forecast in July, the Tokyo-based company said yesterday. Sales are expected to drop 5.2 percent to 4.25 trillion yen, missing the earlier projected 4.59 trillion yen.

Canon reduced its forecasts for camera and copier sales after the yen soared 41 percent against the euro and 20 percent versus the dollar this year. The company, led by Chief Executive Officer Fujio Mitarai, gets about 80 percent of sales from overseas and forecast lower earnings as the credit crisis forces customers to hold back spending.