Sales, Profit Slide for Canon Inc.’s First Quarter

Canon Inc. Headquarters - Tokyo, Japan

Canon Inc. Headquarters – Tokyo, Japan

Canon Inc. of Tokyo has reported for its first quarter that ended March 31, 2015, with sales of U.S. $7.0 billion, down 7 percent, and net income of U.S. $247 million, down 17.5 percent, both versus first-quarter 2015.

The firm reports that demand for office copier/MFPs “remained at around the same level as for the previous year,” while the market for laser printers “shrunk due to the sluggish market in emerging countries.” Color copier/MFPs sales rose, led by the A3 (12”x18”) imageRUNNER ADVANCE C3300-series models launched in the previous year, and the imagePRESS C10000VP-series, which targets the production-printing market.

Demand for inkjet printers continued to decline, mainly in emerging countries in Asia. Within the Industry and Others sector, however, demand for lithography equipment used in the production of semiconductor devices and flat panel displays (FPDs) “enjoyed strong growth thanks to active capital investment by memory device and panel manufacturers.”

As for cameras, although demand for interchangeable-lens digital cameras continued to recover in developed countries, demand across Asia continued to decline compared with last year. Likewise, sales volumes of digital compact cameras declined in all regions.

During Canon’s first quarter, although office copier/MFPs enjoyed “solid demand,” mainly for color models, total sales volume of laser printers declined due to the contraction of the market.

Consequently, along with the negative effect of foreign currency-exchange rates – i.e., the growing appreciation of the Japanese yen – first-quarter net sales declined 7.0 percent year-over-year to ¥797.2 billion. Net income was ¥25.63, a year-on-year decline of ¥5.44.

Of note is that Canon emphasizes that its color copier/MFP products continue to lead sales growth and that it expects “new products to remain core for us to outpace this market segment with double-digit unit sales growth.” In the production-printing business, it will also focus on new products, as well as expanding its lineup of continuous-feed production-printing systems to reap consumable sales.

Forecast

For its full year, Canon has lowered its forecast for both sales and net income. It now projects net sales of ¥3,600.0 billion, a year-over-year decline of 5.3 percent, and net income of ¥200.0 billion, a year-over-year decline of 9.2 percent.

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