Canon 4Q profit edges up 1.8 percent

TOKYO - Canon Inc. said Wednesday its profit edged up 1.8 percent in the fourth quarter from the year before, helping it reach a record annual profit for the eighth straight year.

The company also forecast steady profit growth in the year ahead despite anxiety about a global economic slowdown and the strong yen, which could drag on exports.

Net income rose to 127.8 billion yen ($1.197 billion) in the October-December quarter from 125.6 billion yen a year earlier, the Japanese electronics maker said in a release. Sales of office equipment and cameras largely offset a rise in research and development expenses.

Sales in the fiscal fourth quarter climbed 3.9 percent to 1.264 trillion yen ($11.8 billion), it said.

Office equipment sales rose 5 percent on growth in its combination printer-copier-fax machine business. Single-purpose monochrome and color laser printers also helped support growth.

Sales of digital compact and single lens reflex cameras fueled 5.4 percent growth in the company's digital camera business from the year before, it said. But greater research and development spending and a rise in operating expenses held fourth quarter profits down.

For the full year, Canon's profit rose 7.3 percent to 488.33 billion yen ($4.57 billion). That missed the company's forecast for 500 billion yen but it was still the eighth straight year of record annual earnings.

Annual sales rose 7.7 percent to 4.48 trillion yen ($41.97 billion).

Looking ahead, Canon predicts that annual net earnings will rise 6.5 percent to 520 billion yen ($4.87 billion) on sales of 4.72 trillion yen ($44.22 billion).

That's an upbeat outlook amid concerns that the U.S. might be sliding into a recession and global growth could slow this year.

Sales of digital cameras remained strong over 2007, helping the Tokyo-based manufacturer soak up the impact of the strengthening yen on its exports.

Canon shares fell 1.88 percent to 4,690 yen ($43.93) on the Tokyo Stock Exchange. The company released results after the close of trade. The results were based on U.S. accounting standards.