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Canon Bounces Back Strongly in Second Quarter and First Half

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Canon Inc. of Tokyo, Japan, today reported results for its second quarter and the first half of its fiscal year, with both ending on June 30, 2021.

Second Quarter

For the second quarter, Canon reported net sales of ¥881.9 billion (U.S. $8 billion), up 31 percent year-over-year. Operating profit was ¥77.3 billion (U.S. $696 million), versus a loss of ¥17.7 billion for second-quarter 2020. Net income was ¥61.1 billion (U.S. $550 million), versus a loss of ¥8.8 billion for second-quarter 2020.

The firm noted that it had exceeded its plan, with for instance, operating profit above ¥70 billion for three consecutive quarters. Second-quarter operating profit and net income also exceeded those for the first-quarter 2021.

For the second quarter, Canon reported strong demand for office MFPs, with MFP sales showing a significant increase compared with the same period of the previous year, when the market declined sharply as the COVID-19 pandemic spread worldwide.

For its “Prosumer” print category, sales of laser printers, both monochrome and color models, decreased compared with the same period of the previous year due to lower production due to lockdowns in Southeast Asia, despite an increase in demand due to remote working.

Sales of consumables increased significantly compared with the same period of the previous year, when demand decreased due to the impact of COVID-19.

For inkjet printers, sales were down compared to second-quarter 2020, when demand for home use increased rapidly due to the spread of COVID-19. However, sales of refillable ink tank printers increased year-over-year due to strong global demand.

Sales for production printers also increased year-over-year.

For its Printing group, Canon reported second-quarter net sales of ¥489.6 billion, up 24.5 percent year-over-year, and operating profit of ¥63.8 billion, up 252.3 percent year-over-year.

Canon expects office print volumes and service revenue to recover to about 90 percent of pre-pandemic levels by the end of the year. It also expects continued recovery for its production-printer business.

Other Businesses

For cameras in the second quarter, Canon said  the market remained solid mainly for mirrorless cameras due to the growth of photography as a hobby.

For medical equipment, the trend toward recovery continued due to increased sales activities focusing on medical institutions.

For lithography equipment, demand for both semiconductor lithography equipment and FPD (Flat Panel Display) lithography equipment remained solid.

First Half

For its first half, Canon reported net sales of ¥1,724 billion (U.S. $15 billion), up 18.5 percent year-over-year. Operating profit was ¥147 billion, up 877.6 percent year-over-year.  Net income was ¥105 billion (U.S. $201 million) up 707.9 percent year-over-year.

Forecast

For its fiscal year that will end on December 31, 2021, Canon raised its forecast. It’s now forecasting net sales of ¥3.6 trillion, up 13.9 percent versus its previous forecast; operating profit of ¥283 billion, up 156 percent versus its previous forecast; and net income of ¥201 billion, up 141.2 percent versus its previous forecast.

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