Net Income, Profit Down for Canon’s Full Year, but ‘Firm Demand’ for Color Copier/MFPs

canon inc.

Canon Inc. of Tokyo reported that net income for its full fiscal year 2015 was ¥201.65, a year-over-year decline of ¥27.38, or -12.0 percent, while operating profit declined by 2.3 percent to ¥355.2 billion. Net sales for the year were up 2.0 percent.

Canon reports that demand for office copier/MFPs “remained firm, mainly for color models,” while the interchangeable-lens digital camera market continued to face “harsh conditions owing to currency depreciations in emerging countries and the slowdown in China.” Demand for digital compact cameras also declined amid a  shrinking market.

Demand for inkjet printers declined in emerging countries, mainly in Asia, due to the depreciations of emerging-country currencies and the slowdown in China. In the industrial-equipment market, ongoing strong investment by manufacturers led to “healthy demand” for semiconductor lithography systems for memory devices, image sensors, and power semiconductor devices.

Demand for lithography equipment used in the production of flat-panel displays (FPDs) increased for large-size panels, as “device manufacturers boost capital investment for larger-size LCD panels that offer higher levels of resolution.”

The average value of the yen during the year was ¥121.13 against the U.S. dollar, a year-over-year depreciation of approximately ¥15, and ¥134.20 against the euro, a year-over-year appreciation of approximately ¥6.

Canon notes that while, sales of its digital cameras and inkjet printers declined in the face of continued harsh conditions, mainly in China and emerging Asian countries, by contrast, sales of color-office MFFs and color production-printing systems “increased steadily.” Sales of semiconductor lithography equipment and FPD lithography equipment also largely exceeded those for the previous year “thanks to favorable market conditions.” Consequently, benefitting from the boost provided by Canon’s acquisition of Axis and the positive effect of favorable currency-exchange rates, net sales for the year increased 2.0 percent year-over year to ¥3,800.3 billion.

Office Business Unit

Looking at Canon’s full-year performance by business unit, within Canon’s Office Business Unit, office MFPs, thanks to “strong sales of color models led by new small-office/home-office color A3 (12”x18”) imageRUNNER ADVANCE C3300 series” and imagePRESS C800/700-series color digital presses targeting the light production market, unit sales of color models increased compared with the previous year, as did unit sales for the segment overall, including monochrome models, which had been facing decreasing demand.

Among high-speed continuous-feed printers, the new Océ-produced VarioPrint i300, Canon’s first high-speed, sheet-fed color inkjet press, “gained favorable reviews.” As for laser printers, total sales volume decreased due to declining demand in emerging countries. Those factors, coupled with the positive effect of favorable currency-exchange rates, resulted in sales for the business unit totaling ¥2,110.8 billion, a year-over-year increase of 1.5 percent, while operating profit totaled ¥290.6 billion, a year-over-year decrease of 0.5 percent.

More Resources

Canon projects full-year consolidated net sales for 2016 in the range of ¥3,850.0 billion, a year-over-year increase of 1.3 percent; operating profit of ¥360.0 billion, a year-over-year increase of 1.3 percent; income before income taxes of ¥360.0 billion, a year-over-year increase of 3.6 percent; and net income attributable to Canon Inc. of ¥230.0 billion, a year-over-year increase of 4.4 percent.

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