Canon Inc expects pretax profit in the year through December 1998 to come in 10% above its forecast of 145bn yen, at about 160bn yen ($1.28bn), according to the Nihon Keizai Shimbun. Fiscal 1998 sales are projected to climb to 1.63 trillion yen ($13.04bn), up 7% year over year. That figure represents a slight slowdown from 9% revenue growth in 1997, a reflection of the depressed Japanese economy, Canon says. Despite increased sales next year, profit is expected to rise only slightly, barring foreign exchange fluctuations, due to global pricing pressures. The company calculates an average exchange rate of 125 yen to the US dollar next year, compared with about 120 yen this year. If that rate holds true, it would contribute about 10bn yen to operating profit, which is expected to climb 8% to 170bn yen ($1.36bn). Canon’s reduction of interest-bearing liabilities should also improve its balance of interest/dividend receipts minus payments.
