Canon Inc. Reports Healthy Gain in Net Income, Sales of MFP-Copiers, and Laser and Inkjet Printers
Canon Inc. of Japan reported a healthy 16.4 percent gain in net income for its first fiscal quarter. While it says much of the gain was due to favorable exchange rates for the Japanese yen versus the U.S. dollar and euro, it also reported healthy sales of MFP copiers and laser and inkjet-print sales, although weaker camera sales.
For its January-March quarter, net income was 47.6 billion yen ($467 million U.S.) on sales of 868.3 billion yen ($8.5 billion U.S.), up 6 percent year-over-year, as healthy laser printer and copier/MFP demand offset lower camera sales.
Within the quarter, Canon reports:
- Although there was increased demand for inkjet printers in Japan, overall market demand decreased slightly from the previous year. Sales of inkjet-printer consumables increased however.
- MFPs and laser printers enjoyed steady growth that has continued from the previous year.
- Within Canon’s Office Business Unit, sales of color office MFPs increased from the year-ago period, led by the imageRUNNER ADVANCE C5200/C2200 series.
- In its digital production-printing systems business, sales volume for the imagePRESS C6011/C6010 series increased.
- Within Canon’s business for high-speed continuous-feed printers and wide-format printers, sales of the Océ ColorStream 3000 series showed solid growth.
- Among laser printers, color MFP models recorded healthy growth, contributing to a year-over-year increase in sales volume. As a result, sales for this business unit totaled 509.2 billion yen (.$4,943 million U.S.), a year-over-year increase of 9.7 percent, while operating profit totaled 72.5 billion yen ($703 million U.S.), increasing 20.6 percent.
For its second quarter, Canon projects demand for MFPs to expand moderately, mainly for color MFPs. Likewise, demand in the laser-printer market is also expected to continue growing moderately, centered on MFP models. It expects demand for its inkjet printers to increase as the global economy recovers from the recession, leveling off to remain in line with the previous year.
Canon’s performance outlook is based on a weaker yen, with exchange rates of 100 yen to the U.S. dollar and 135 yen to the euro, representing depreciations of approximately 3 yen against the U.S. dollar, and approximately 6 yen against the euro compared with the annual average rates of the previous year.
Canon projects full-year consolidated net sales in 2014 of 3,860.0 billion yen ($37,476 million U.S.), a year-over-year increase of 3.4 percent; operating profit of 365.0 billion yen ($3,544 million U.S.), a year-over-year increase of 8.2 percent; and net income of 240.0 billion yen ($2,330 million yen), a year-over-year increase of 4.1 percent.