On Jan. 31, 2017, Canon announced its financial results for both the fourth quarter of 2016 and the full fiscal year ending Dec. 31, 2016.

For the fourth quarter, net sales were down 7.4 percent, operating profits down 25.1 percent and net income down 34.9 percent.

For the year, net sales were down 10.5 percent, operating profits down 35.6 percent and net income down 31.6 percent.

As with most Japanese firms, Canon was affected by exchange rates and the stronger yen. In its supporting materials, Canon stated “The average value of the yen during the year was ¥108.58 against the U.S. dollar, a year-on-year appreciation of approximately ¥13, and ¥120.25 against the euro, a year-on-year appreciation of approximately ¥14, which had a negative impact of ¥280.4 billion on net sales and of ¥101.8 billion on operating profit.”

In the Office Business Unit, office MFD sales increased from the previous year, which Canon attributes to strong sales of color models such as the A3 imageRUNNER ADVANCE C5500 series, the SOHO color A3 imageRUNNER C3300 models, and expanded sales of its production print imagePRESS C10000VP-series models. These sales, Canon reports, made up for continued decrease in monochrome models.

Total sales for the Office Business Unit were ¥1,807.8 billion ($15.9 billion), down 14.4 percent year over year. In addition to the currency exchange rates, Canon attributes the decline to sluggish economic conditions in emerging countries until the third quarter. Unit sales exceeded the previous-year period in the fourth quarter, Canon reports.

For its 2017 outlook, Canon expects demand for color office MFDs to continue to make up for the decline in monochrome and be in line with the previous year, with demand for color and laser multifunction models with high potential consumable sales expected to increase.

“Upon taking into consideration the impact of the acquisition of TMSC and the current economic forecast,” reports Canon in its financial statements, “Canon projects full-year consolidated net sales in 2017 of ¥4,000.0 billion, a year-on-year increase of 17.6 percent; operating profit of ¥255.0 billion, a year-on-year increase of 11.4 percent; income before income taxes of ¥260.0 billion, a year-on-year increase of 6.3 percent; and net income attributable to Canon Inc. of ¥170.0 billion, a year-on-year increase of 12.8 percent.”

Read Canon’s full financial reports here.