Canon Delivers Stellar Financial Results for First Quarter, Issues Upbeat Forecast

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Canon Inc. of Tokyo, Japan, today reported upbeat financial results for its three-month fiscal period that ended on March 31, 2017,  reversing several recent difficult quarters. Net sales for Canon’s first quarter totaled  ¥ 972.8 billion, up 22 percent versus the same quarter a year ago, while net income increased by 96.8  percent to ¥55.1 billion. Basic net income attributable to Canon Inc. shareholders per share for the quarter was ¥50.44, a year-over-year increase of ¥24.81.

The firm attributed its robust sales improvement to  solid demand for office MFPs (mainly for color models), higher sales of laser printers, and higher sales of interchangeable-lens digital cameras, all versus the same period a year ago. Sales of FPD lithography equipment and manufacturing equipment for OLED displays also exceeded those for the previous year, due, Canon says, to increasing demand of panels for OLED displays.

Although inkjet printers sales remained the same compared to a year ago, Canon says it saw expanded sales of inkjets equipped with large-capacity ink tanks, especially in developing economies.

Canon says its acquisition of Toshiba Medical Systems Corporation (TMSC) also improved its bottom line.

For the first quarter, operating expenses increased by 7.7 percent year-over-year to ¥392.7 billion, mainly due to the impact of acquiring TMSC. As a result, first-quarter operating profit increased by 88.8 percent to ¥75.7 billion.

Office Copier/MFPs and Printers

Canon notes that office MFPs enjoyed solid demand, mainly for color model, and sales of laser printers increased compared to the same period a year ago, amid recovering demand in emerging economies, supported by “solid sales of new models.”

Demand for consumer inkjet printers continued to decline, mainly in developed countries. However, looking at inkjet printers overall, the firm says that, despite the shrinking market, sales volume remained at approximately the same level as the previous year.

Within Canon’s Office Business Unit, sales of office MFPs increased from the same period a year ago, supported by steady sales of the A3 (12”x18”) imageRUNNER ADVANCE C5500-series models, which were launched in the previous year, and by small-office/home-office color A3 (12”x18”) imageRUNNER ADVANCE C3300-series models.

As for laser printers, sales increased steadily for new models introduced to expand the product lineup, while sales of consumables started to recover, having “bottomed out” in the second half of the previous year. Consequently, the sales of both printers and consumables increased year-over-year. These factors resulted in total sales for the Office Business Unit of ¥457.7 billion, a year-over-year increase of 0.7 percent, while operating profit totaled ¥55.4 billion, a year-over-year increase of 24.0 percent.

Canon also reported that, among its high-speed continuous-feed printers, sales of the Océ-produced VarioPrint i300, a high-speed sheet-fed color inkjet press, increased year-over-year.

Forecast

Taking into consideration its newly consolidated TMSC and its economic forecast, Canon projects full-year consolidated net sales for 2017 of ¥4,020.0 billion, a year-over-year increase of 18.2 percent; operating profit of ¥270.0 billion, a year-over-year increase of 18.0 percent; income before income taxes of ¥280.0 billion, a year-over-year increase of 14.4 percent; and net income of ¥180.0 billion, a year-over-year increase of 19.5 percent.

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