Reuters: Global Markets: Nikon tumbles after cutting profit forecast on euro

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Nikon tumbles after cutting profit forecast on euro Aug 9th 2012, 02:13 TOKYO | Wed Aug 8, 2012 10:13pm EDT TOKYO (Reuters) - Nikon Corp (7731.T) shares fell as much as 12 percent on Thursday, a day after the camera maker lowered its full-year operating profit forecast below market expectations to reflect a change in its foreign exchange rate assumption for the euro. Nikon, which competes with Canon Inc (7751.T) and Sony Corp (6758.T) in digital cameras, cut its euro rate assumption to 100 yen from 105 yen for the year to next March, causing it to reduce its annual profit projections, despite maintaining its product shipment forecasts for the period. The company, which also makes precision equipment, cut its operating profit guidance by 5.6 percent to 85 billion yen ($1.08 billion) for its current business year, which is below an average estimate of 95.5 billion yen in a poll of 19 analysts by Thomson Reuters I/B/E/S. Shares of Nikon tumbled on Thursday morning by as much as 11.9 percent to a six-month low of 2,001 yen, before trimming losses to trade at 2,094 yen, down 7.8 percent. The Nikkei 225 average .N225 edged up 0.4 percent. The euro has weakened against the yen in recent months in line with concerns over euro zone debt and is currently trading at about 97 yen. For the April-June quarter, Nikon booked an operating profit of 23.4 billion yen, a 36.7 percent year-on-year drop, due to the strong yen and sales expenses. The company maintained a sales forecast for 18 million compact cameras and 10 million interchangeable lens cameras in the business year. Last month, Canon also cut its full-year operating profit outlook citing the European recession. (Reporting by Dominic Lau, James Topham; Editing by Chang-Ran Kim and Richard Pullin) Link this Share this Digg this Email Reprints

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