Strong Sales of Office Multifunctionals Drive Income Growth for Canon in Latest Quarter

canon inc. headquartersAlthough sales were down 4.1 percent for Canon Inc.’s fiscal quarter ending June 30, 2014, net income was up 21.1 percent (both compared to the same quarter a year ago). The firm says gains in net income were driven by strong sales of office MFPs and industrial equipment. Net income for the quarter was 80.8 billion yen (U.S. $796 million), compared with 66.5 billion yen for the same quarter a year ago.

For its full fiscal year ending in December 2014, the Tokyo-based firm slightly revised its outlook downward for revenue to 3.78 trillion yen from the 3.86 trillion yen it initially forecast, but its net income outlook is unchanged at 240 billion yen. Canon also reported:

  • Demand for office MFPs and laser printers maintained steady growth.
  • Demand for interchangeable-lens digital cameras decreased in Japan; Canon says this was due to a rush in demand prior to the consumption tax increase. Demand overseas showed signs of recovery in China.
  • Demand for digital compact cameras continued to shrink in both developed countries as well as in emerging markets.
  • In the inkjet-printer market, demand decreased from the previous year.
  • In the industry and others sector, a rebound in capital investment for both image sensors and memory devices led to a pickup in demand for semiconductor lithography equipment, while demand for lithography equipment used in the production of FPD recovered for large-size panels.

Within its Office Business Unit, sales of color office MFPs remained at the same level as the year-ago quarter, led by “healthy growth” of Canon’s imageRUNNER ADVANCE C5200 series. In its high-speed continuous-feed printer and wide-format printer business, sales of the Océ ColorStream 3000 series showed “solid growth.” Among laser printers, although the sales of monochrome laser printers remained sluggish, color MFPs recorded growth.

As a result, sales for Canon’s Office Business Unit totaled 522.5 billion yen (U.S.$5,173 million), a year-over-year increase of 0.5 percent, while operating profit totaled 88.1 billion yen (U.S.$872 million), increasing 15.7 percent. Sales for the combined first six months of the year for the Office Business Unit totaled 1,031.7 billion yen (U.S.$10,215 million), growing 4.8 percent year-on-year, while operating profit increased by 17.8 percent to 160.6 billion yen (U.S.$1,590 million).

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