Canon Shares Drop by Most in a Year After Memory Costs Bite

Canon shares suffered their steepest decline in a year after the camera maker cut its outlook below estimates on soaring memory prices, a harbinger of more pain in the electronics sector ahead.

The Tokyo-based company’s stock slid as much as 8% in Tokyo on Friday after it said it secured the memory it needs, but at a premium that adds ¥50 billion ($313 million) to its annual costs. Canon lowered its full-year operating income forecast by 5% to ¥456 billion, and said that it has yet to incorporate impact from the conflict in the Middle East beyond May.