Canon May Raise Overseas Output, Review Product Prices if Yen Stays Strong

Canon Inc., the world’s largest camera maker, may raise overseas output and review prices for its products if the yen continues to strengthen, to counter the erosion of export sales.

“We plan to cut production costs first, but if the yen appreciates further, we may have to consider boosting the ratio of overseas production,” Masaya Maeda, who heads Canon’s camera business, made the remarks to reporters in Tokyo today. “We may also review our pricing as we pay close attention to forex rates.”

Canon, which generated 78 percent of sales outside Japan last year, forecast the U.S. dollar will average 90 yen and the euro 110 yen in the second half, it said in July. The Japanese currency has averaged about 87 yen against the dollar and 111 against the euro so far in the period.

Shares of Canon gained 1.3 percent to close at 3,470 yen in Tokyo trading, narrowing their decline this year to 11 percent.

Tokyo-based Canon last month raised its forecast for annual camera sales to 26.5 million units from an April projection of 25.9 million, citing robust growth in single-lens reflex models. Expansion across the company’s businesses will extend into the second half as China and emerging markets lead the global economic recovery, the company said July 27.

To contact the reporter on this story: Mariko Yasu in Tokyo at myasu@bloomberg.net.

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