As Canon kicked off Japan’s corporate earnings season in late April with an upgrade to its annual profit guidance, chief executive Fujio Mitarai welcomed the yen’s sharp decline as “a big plus” for the printer maker.
Canon has been one of the biggest beneficiaries as the Japanese currency fell through ¥130 against the dollar just days before its results came out. The yen’s tumble has made it cheaper to export the office equipment it makes in Japan, while boosting profits earned overseas.
Other big Japanese export names from Sony and Toyota to Nintendo have done even better, churning out record profits despite Covid-19 disruptions. But what was long a blessing for corporate Japan is suddenly turning into a threat as the yen’s spectacular fall to a multi-decade low coincides with a surge in commodity prices sparked by Russia’s invasion of Ukraine.