Canon Discusses Implications of HP’s Acquisition of Samsung Printer Business
In a presentation to investors and analysts this week, Canon Inc. Executive Vice President and CFO Toshizo Tanaka discussed Canon’s third-quarter earnings (see story here), as well as HP Inc.’s pending acquisition of Samsung’s Printer Business Unit for $1.05 billion (see story here).
According to Tanaka, Canon will “work even closer with HP, deepening our cooperation as we work to improve our performance, aggressively carrying out all measures aimed at recovering printer demand.”
Tanaka said that in regards to HP’s pending acquisition of Samsung’s printer business, “we expect negligible impact on our business.” According to Tanaka, ” Based on what HP announced, the main purpose for the acquisition is to enter the copier market. We both believe that this will not change our partnership in the laser-printer space and that mutual growth can be achieved.”
Regarding the effect of HP’s acquisition on Canon’s copier/MFP business, Tanaka said that: “a lot remains unclear, such as how service and maintenance will be managed in the future. Although we need to continue monitoring the situation, this market has high barriers to entry. As such, the possibility of this M&A (merger and acquisition) suddenly becoming a threat is unlikely.”
While Canon’s financial results for its third-quarter were lackluster, and it downgraded its forecast for its fourth quarter and full year, Tanaka is projecting 20-percent sales increase for office-imaging supplies versus its third quarter.
- October 2016: Tough Quarter for Canon as Sales, Income, Profits Down; Reduces Forecast
- July 2016: Canon Cuts Forecast as Sales, Income, Decline in Second Quarter
- April 2016: Sales, Profit Slide for Canon Inc.’s First Quarter
- January 2016: Net Income, Profit Down for Canon’s Full Year, but ‘Firm Demand’ for Color Copier/MFPs
- October 2015: Sales Up for Canon’s Quarter, but Income Slips; Lowers Outlook for Full Year
- July 2015: Sales Up for Canon’s Second Quarter, but Net Income Slides
- April 2015: As Camera Sales Fall, Canon Earnings Slip in Latest Quarter, Cuts Forecast
- January 2015: ROBUST QUARTER AND FULL-YEAR FINANCIAL RESULTS FOR CANON, OFFICE IMAGING RECORDS HEALTHY GAINS
- October 2014: SALES DOWN, INCOME FLAT FOR CANON’S THIRD QUARTER; DEMAND FOR OFFICE MULTIFUNCTIONALS IS STEADY
- July 2014: STRONG SALES OF OFFICE MULTIFUNCTIONALS DRIVE INCOME GROWTH FOR CANON IN LATEST QUARTER