TOKYO (Reuters) - Japan's Canon reported an 88 percent fall in quarterly profit, hit by slumping demand for copiers and printers, but it raised its annual outlook on cost cuts and a weakening yen.
"...Demand for office machines and their supplies such as toner cartridges remained weak as the global financial crisis made the replacement cycle of copiers and printers longer and prompted corporate clients not to use them as heavily as before..."
"...Ricoh last October bought major U.S. office equipment distributor Ikon Office Solutions for $1.6 billion, delivering a heavy blow to Canon, whose machines had represented 60 percent of the products Ikon handled before the October acquisition but have rapidly been replaced with Ricoh equipment since then...
"...Canon, whose other competitors include Xerox and Ricoh, earlier this month delayed the construction of a toner cartridge components plant in western Japan for a second time, underscoring weak demand..."
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What with all markets taking a hit as the recession carries on no wonder a big company like Canon is starting to feel it a little there is no surprise here but lets all hope that things start getting back to normal soon.
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