Ink manufacturer 'helped by sales of laser printers'
A manufacturer of printer ink and other related products has reported seeing a rise in earnings.
Canon noted a fourfold increase in profit for the second quarter of this year and cited strong sales of its laser printers as one of the causes of the trend.
It said it experienced a net profit of 67.6 billion yen (500 million) for the three-month period.
However, despite the good results, the ink producer did not raise its forecast for an annual profit of 240 billion yen.
This was due to the fact that the yen has gained strength and there are still uncertainties over the outlook of European economies - which have not yet properly bounced back from the difficulties of the recession.
Responding to the development, chief fund manager at Ichiyoshi Investment Management Mitsushige Akino said: "The market still has a downbeat earnings outlook going forward and as if as a proof, the company also didn't revise up its outlook."
He added: "It's hard to think the company's earnings will keep up the pace seen in the first half because so many uncertainties remain."
Indeed, many printer ink companies may be experiencing difficulties at present due to the economic conditions.
Firms and individuals are trying to rein in their spending due to financial pressures and this may see them reduce the level of ink and other related items they use.
Canon chief financial officer Toshizo Tanaka noted he expects a cautious outlook for the European market and went on to say it is hard to forecast the impact of the financial crisis that started in Greece, Reuters reported.
Speaking at a briefing, he remarked: "For that reason, we cannot expect rapid growth in Europe."
However, he added he did not expect the crisis to be as big as the Lehman shock in 2008.
Ink manufacturer 'helped by sales of laser printers'