TOKYO, March 14, 2003 - Canon Inc. ("Canon") today announced its revised non-consolidated forecasts for the year ending December 31, 2003.
(January 1, 2003 - December 31, 2003)
| Net sales | Ordinary profit | Net income | ||
| First Half | Previous Forecast (A) | 903,000 | 106,000 | 64,000 |
| Revised Forecast (B) | 903,000 | 106,000 | 90,000 | |
| Variance (B-A) | 0 | 0 | +26,000 | |
| Variance (%) | 0.0% | 0.0% | +40.6% | |
| (Reference) Results for the previous period (Six months ended June 30, 2002) |
808,357 | 93,698 | 58,478 | |
| Full Year | Previous Forecast (A) | 1,920,000 | 255,000 | 154,000 |
| Revised Forecast (B) | 1,920,000 | 255,000 | 180,000 | |
| Variance (B-A) | 0 | 0 | +26,000 | |
| Variance (%) | 0.0% | 0.0% | +16.9% | |
| (Reference) Results for the previous period (Year ended December 31, 2002) |
1,789,005 | 240,982 | 144,184 |
(Amounts are in millions of yen)
Pursuant to the enactment of the new law concerning defined benefit corporate pension plans in Japan, Canon Inc. ("Canon"), on March 1, 2003, obtained from the Minister of Health, Labor and Welfare, an exemption from the obligation to pay benefits for future employee services related to the substitutional portion of the Employees' Pension Fund By applying the interim measure set forth in the "Practice Guideline Concerning Retirement Benefit Accounting (Interim Report)" (Report of the Accounting Standards Committee of The Japanese Institute of Certified Public Accountants No. 13) Item 47-2, Canon is revising its non-consolidated forecasts to include an approximate increase of 45 billion yen in non-ordinary income and 26 billion yen in net income. This is reflected in the non-consolidated first-half and full-year forecasts, which were released on January 30, 2003.
Consolidated financial statements are prepared in conformity with U.S. generally accepted accounting principles. Under U.S. GAAP, the relevant impact is recognized only on the settlement of the substitutional portion when the company returns the past benefit obligation to the Government (expected to be sometime in or after October 2003). Given the difficulty in estimating the future financial impact, consolidated forecasts are not being revised.
