Investing.com – Canon Inc (T:7751) has seen two-digit slump in its shares, a two-decade low, as the ongoing COVID-19 pandemic slashes demand for its iconic cameras and printers.
Canon shares tumbled 12.93% to JPY1808.50 ($17.1996) by 12:23 AM ET (5:23 AM GMT), the biggest intraday decline since July 2012.
The Japanese company saw demand for its products tumble more than expected due to the COVID-19 pandemic. The decreased demand saw the company slashing its interim dividend and forecast a JPY45 billion annual profit, which missed even the lowest analyst forecasts.
Canon has struggled to maintain growth, with smartphones now widely replacing cameras to take pictures. The company has since diversified into areas such as diagnostic imaging equipment to channel new growth avenues. But falling demand across all its products as companies tighten their belts in the global economic downturn saw the company report its first quarterly loss.
Although the company saw collapsed corporate and consumer demand due to office closures and lockdown measures in many countries, Canon’s challenge is to harness the rapidly increasing demand for medical equipment. The company will need to find efficient ways to overcome travel as well as logistical restrictions in order to negotiate deals and install the equipment at the purchaser’s premises.