Double-Digit Decline in Sales, Net Income for Canon’s First Quarter

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Canon Inc. of Tokyo, Japan, today reported results for its first quarter, reporting a double-digit decline in sales and earnings compared to last year’s first quarter, due to lower sales of cameras and industrial equipment, as well as unfavorable currency-exchange rates.

For its first quarter, which ended on March 31, 2019, Canon reported net sales of 864.5 billion yen, down 10 percent year-over-year, and net income of 31.3 billion yen, down 45.2 percent year-over-year. Operating profit was 40 billion yen, down 47.5 percent year-over-year.

On the bright side, Canon said demand for its copier/MFPs “remained firm,” although demand for its inkjet printers declined.

During the first quarter, unit sales of office MFPs increased year-over-year, with color- office MFPs achieving higher growth than the market average. Sales of laser printers decreased year-over-year, mainly, stated Canon, due to sluggish economic conditions in emerging economies.

Looking at inkjet printers, although sales of refillable ink-tank models increased, overall  sales decreased year-over-year, due to the shrinking market for home-use models.

A Closer Look at the Office Business Unit

Sales of office MFPs increased year-over-year, due to expanded sales of such models as the imageRUNNER ADVANCE Gen3 2nd Edition series, and color models targeting the production-printing market.

As for laser printers, although sales were strong for new color models, sales of both hardware and consumables decreased overall year-over-year due to the economic slowdown in emerging economies.

These factors resulted in total sales for the business unit of 425.6 billion yen, a year-over-year decrease of 3.9 percent, while income before income taxes decreased by 13.5 percent year-over-year to 46.7 billion yen.

Imaging Systems Business Unit

For inkjet printers, sales of refillable ink-tank models increased mainly in emerging markets. However, sales decreased overall year-over-year, due to decreasing demand for home-use models in developed countries. As a result, sales for the business unit decreased by 17.0 percent to 176.3 billion yen year-over-year, while income before income taxes decreased by 81.1 percent year-over-year to ¥5.0 billion.

Within the Imaging System Business Unit, Canon says it maintained the top share of the overall interchangeable-lens digital camera market, mainly in key countries in Europe and the Americas, as well as in Japan and China.

Sales growth for mirrorless cameras was higher than the market average, thanks to such models as the EOS R, equipped with a full-frame sensor, and the entry-class EOS Kiss M.

However,unit sales decreased overall year-over-year, mainly due to the more rapid decrease in demand than expected resulting from both the shrinking market and the slowdown of the Chinese economy. As for digital compact cameras, sales decreased compared year-over-year amid the shrinking market.

Full-Year Forecast

Canon projects full-year 2019 consolidated net sales of 3,850.0 billion yen, a year-over-year decline of 2.6 percent; operating profit of 274.0 billion yen, a year-over-year decline of 20.1 percent; income before income taxes of 295.0 billion yen, a year-over-year decline  of 18.7 percent; and net income attributable to Canon of 200.0 billion yen, a year-over-year decline of 20.9 percent.

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