Sales Up for Canon’s Second Quarter, but Net Income Slides

canon u.k. headquartersCanon Inc. of Japan released results for its second quarter, with net sales up 5.1 percent to ¥974.4 billion ($7.8 billion U.S.), but net income down 15.7 percent, both versus second-quarter 2014.

Canon did however report strong sales and demand for MFPs, while laser printers “maintained steady growth, mainly for colour models,” though inkjet-printer demand “decreased from the previous year due to sluggish market conditions in southeast Asian countries.”

There was healthy demand for Canon MFPs and A4 color laser printers, particularly for the imageRUNNER ADVANCE C350/C250, imagePRESS C800 and C700 production printers, and imageRUNNER ADVANCE C3300 A3 printers. As a result, sales for Canon’s Office Imaging unit were up 2.8 percent to ¥537 billion ($4.3 billion U.S.), though operating profit fell 9.9 percent to ¥79.4 billion ($643 million U.S.), due to “the increase in R&D and other expenses”. For the first half of Canon’s fiscal year, sales for the unit were up 3.3 percent to ¥1,066.1 billion ($8.6 billion U.S.), but operating profit declined 5.5 percent to ¥151.1 billion ($1.2 billion U.S.).

In the inkjet-printer department, total sales fell “due to economic stagnation in southeast Asian countries,” with sales up slightly to ¥332.5 billion ($2.6 billion U.S.), with operating profit falling 0.9 percent to ¥50.5 billion ($409 million U.S.), with sales volume in developed countries up due to sales promotions and the introduction of Canon’s new Maxify business-inkjet printers and All-in-Ones. However, for the first half of Canon’s fiscal 2015 year, sales of inkjet printers fell 4.8 percent to ¥595.2 billion ($4.8 billion U.S.), while operating profit fell 14.4 percent to ¥79.6 billion ($645 million U.S.)

For the remainder of its fiscal year, Canon is forecasting that MFP demand will “expand moderately, mainly for colour models,” while color laser MFP demand is also said to grow. However, it forecasts a sales decline for inkjet printers due to weak market conditions in southeast Asian countries. Overall, Canon is forecasting that net sales for the entire fiscal year will grow 5.4 percent to ¥3,930 billion ($31 billion U.S.).

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