By Makiko Yamazaki
TOKYO (Reuters) - Japan's Canon Inc (T:7751) on Tuesday cut its full-year profit view citing weaker-than-expected demand for consumer cameras in China and Southeast Asia, adding weight to its near $3 billion decision this year to expand into surveillance equipment.
The world's biggest maker of cameras and printers forecast group operating profit of 365 billion yen ($3.02 billion) for the year through December, from 380 billion estimated three months prior. It saw revenue at 3.8 trillion yen rather than 3.9 trillion yen.
Canon has been investing in new businesses to reduce its reliance on cameras as smartphones supplant compacts while the market for interchangeable-lens models nears saturation. In May, it completed the purchase of 85 percent of Swedish video surveillance firm Axis AB (ST:AXIS), which Canon expects to make up around 2 percent of sales this year.
Cameras still account for about a quarter of overall revenue, and growth in sales is moderating at a quicker pace than expected due to economic slowdown in China and elsewhere, Canon said in a statement.
The company lowered its full-year sales forecast to 6.5 million compact cameras from 7.0 million, and 5.5 million interchangeable-lens cameras from 5.8 million.
The number of uncertainties makes it difficult to predict recovery in sluggish markets, but future economic stimulus could eventually boost demand in China, said Executive Vice President and Chief Financial Officer Toshizo Tanaka at a media briefing.
Canon also said that for the quarter through September, operating profit rose 7.6 percent to 77.3 billion yen, missing the 86.5 billion yen average estimate of seven analysts polled by Thomson Reuters.
Shares of Canon ended down 2.1 percent ahead of the announcement, versus a 0.9 percent decline in the broader market (N225).