Japanese camera and copier giant Canon today forecast a 21 per cent rise in operating profit for 2011, roughly in line with market expectations, helped by higher camera sales and cost cuts.

Strong sales from its mainstay office copier and laser printer business and an aggressive push into emerging markets are also expected to boost Canon's profits.

The world's largest maker of digital cameras expects 470 billion yen (€4.17 billion) in operating profit for the year that ends in December, against the average estimate of 472.5 billion yen in a poll of 19 analysts.

It projected sales to rise 10.6 per cent to 4.1 trillion yen.

Canon, which also makes inkjet printers, aims to sell 30 million digital cameras in 2011, 11.5 per cent more than a year ago and assumes a dollar/yen exchange rate of 85 yen for this year and a euro/yen rate of 110 yen.

The firm, which competes against Sony and Nikon in cameras and Xerox and Ricoh in copiers, posted a 10 per cent fall in operating profit to 82.8 billion yen for October-December compared with a year earlier, hurt by heavier spending on research and development.

For the past business year, the maker of EOS and IXY brand digital cameras booked a 79 per cent surge in operating profit to 387.6 billion yen, which was well flagged to the market after the firm revised up its forecast to 390 billion yen in October.

Eastman Kodak Co yesterday reported a larger-than-expected quarterly loss, while Xerox issued a profit forecast that was at the low end of analyst estimates and said its finance chief would retire - sending its shares down more than 7 per cent.

Canon shares rose almost 8 per cent last year, outperforming a 3 per cent decline in the benchmark Nikkei average. Its shares closed 2.2 per cent higher at 4,195 yen today before the company released its results.

Reuters