<div><p>Japanese high-tech giant Canon Inc. said Wednesday net profit more than halved in 2009, but it expects to recoup some lost ground this year on the back of strong demand for its digital cameras.</p><p>Canon is enjoying strong demand for its single-lens reflex cameras, but a slump in demand for office equipment and printers due to the global economic downturn has taken a heavy toll on its bottom line.</p><p>Net earnings tumbled 57.4 percent last year to 131.6 billion yen (1.5 billion dollars), the company said. Operating profit slid 56.2 percent to 217.1 billion yen as revenue fell 21.6 percent to 3.21 trillion yen.</p><p>Canon managing director Masahiro Osawa told reporters that 2009 was an "unprecedentedly severe year" due to the global economic downturn and strong yen.</p><p>While demand for copy machines was expected to remain weak, Canon forecast brisk electronics sales in Asia and other emerging economies, he said.</p><p>Canon's sales in Asia made up about 19 percent of the total in 2009 and the figure is likely to rise as Chinese consumers become wealthier, Osawa said.</p><p>"The Chinese market has been favourable to sales of single-lens reflex (SLR) cameras. China will become an important target," said Osawa.</p><p>Canon expects its digital camera sales to rise six percent in 2010 to 25 million units, anticipating five-percent growth in the overall global market to about 121 million units.</p><p>The maker behind the EOS SLR and the PowerShot and IXY compact cameras said it expects to return to growth this year after two straight annual declines, predicting net profit will jump 51.9 percent to 200 billion yen.</p><p>The company said operating profit would increase 52.0 percent to 330 billion yen as revenue goes up 7.5 percent to 3.45 trillion yen.</p><p>While Canon maintained a hopeful outlook for the year, some analysts were less optimistic.</p><p>"We think the growth outlook for digital cameras and laser printers is not that good, and these products are unlikely to drive growth the way they used to," predicted Bank of America analyst Ryohei Takahashi.</p><p>"Key risk factors include the replacement of laser printers by other types of imaging equipment, a slump in the digital camera market, and yen appreciation," he added.</p><p>Canon is bidding for Oce, the Dutch manufacturer of office printers, in a friendly takeover worth 730 million euros (1.03 billion dollars).</p><p>Although some Oce shareholders have reportedly rejected the tender offer, Canon said it would not sweeten the deal.</p><p>"We believe that our offering price is reasonable," Osawa said.</p><img src="http://admatch-syndication.mochila.com/images/ad.gif?aid=67885156&bid=informcom" /></div><div id="copyright"><div>

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