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29.07.2020

Canon shares at 20-year lows after dismal quarterly results

news

The company reports first ever quarterly loss and cuts dividend

Stocks impacted: Canon Inc (7751)

Canon suffered the first quarterly net loss since it started quarterly disclosures in 2001, citing weak demand for printers and cameras amid the coronavirus pandemic. The net loss in April-June came to 8.8 billion yen compared with the prior year’s profit of 34.5 billion yen in that quarter. Gross profits contracted by 32.3% and net sales were down 25.7% in the second quarter. Operating profit for the first half of the year decreased by 81.9%. Against this backdrop, the company made dividend cuts. The firm’s stocks plunged nearly 13.5% in Asia, to a two-decade low and saw the biggest decline on an intraday basis in eight years.

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