Robust Quarter and Full-Year Financial Results for Canon, Office Imaging Records Healthy Gains

canon inc.January 27, 2015 – Canon Inc. of Japan reported robust financial results for both its fourth-quarter 2014 and full-year 2014. For fourth-quarter 2014, ending in December 2014, the company’s earnings rose to 68.09 billion yen (U.S. $578 million), versus earnings of 64.25 billion for fourth-quarter 2013. For its full year ending in December 2014, the firm reported earnings of 254.80 billion yen on revenue of 3.727 trillion yen.

For the full-year 2015, Canon is forecasting net sales of 3,900.0 billion yen, a year-over-year increase of 4.6 percent, and net income of 260.0 billion yen, a year-over-year increase of 2.0 percent.

Printing and Office Imaging Maintains Steady Growth

Canon says that demand for its office MFPs and laser printers maintained steady growth, while demand for inkjet printers due to the “sluggish economies of Asia and Europe.”

A loaded imagePRESS C700

A loaded imagePRESS C700

For its full 2014 fiscal year, within Canon’s Office Business Unit, sales of MFPs increased steadily from the year-ago period, led by strong demand for its new imageRUNNER ADVANCE C350/C250 series models, Canon’s first color A4 (letter and legal-size) imageRUNNER ADVANCE machines. Demand was also strong for Canon’s imagePRESS C800/C700, Canon’s first color models targeting the light production-printing  market, and for the A3 (12” x 18”) imageRUNNER ADVANCE C5200 series. As for high-speed continuous-feed printers, Canon says the Océ ColorStream 3000 series continued to enjoy solid sales growth from the previous year.

Among laser printers, although color models and MFPs recorded sales growth, total sales volume decreased slightly from the year-ago period, due to the decrease in demand for monochrome models in European and other markets. As a result, coupled with the positive effects of favorable yen-currency exchange rates, sales for Office Business Unit totaled ¥2,078.7 billion, a year-over-year increase of 3.9 percent.

Although sales of inkjet printers in the fourth quarter increased from fourth-quarter 2013, thanks, Canon says, to new products for the year-end shopping season and marketing tailored to different regions, sales volume for the year declined, which Canon attributes to poor economic conditions in Asia and Europe. However, sales of consumable supplies increased from the previous year owing to a larger inkjet printer installed base. However, overall, sales for this unit declined by 7.3 percent to 1,343.2 billion yen year-over-year.

Other Segments

Within Canons’s Imaging System Business Unit, although sales of Canon interchangeable-lens digital cameras declined due to a shrinking market—in Japan as a result of the reaction following the rush in demand prior to the Japanese consumption tax increase, and in Europe and other markets due to worsening economic conditions, Canon says the advanced-amateur-model EOS 7D Mark II achieved “healthy growth,” enabling Canon to maintain the market’s top share.

As for Canon compact digital cameras, despite a decline in total sales volume, sales of high-added-value models featuring higher image quality and higher-magnification zoom capabilities, such as the PowerShot G7 X and PowerShot SX60 HS/SX700 HS, recorded solid growth, contributing to an  improvement in profitability.

In the Industry and Others Business Unit, ongoing investment following the recovery in the second half of the  previous year by memory-device manufacturers led to increased unit sales of semiconductor lithography equipment for memory devices and image sensors. As for FPD lithography equipment, amid increasing market demand for higher-definition tools, lithography systems for the creation of high-definition mid- and small-size panels recorded healthy growth, contributing to the boosting of both sales volume and market share. Consequently, sales for this business unit totaled 398.8 billion yen, an increase of 6.4 percent year-over-year.

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