On July 27, Canon released its consolidated results for the second quarter and first half of the year ending June 30, 2017. For the second quarter, net sales were up 15.4 percent year-over-year to ¥992.5 billion. Net sales for the first half of the year were up 18.6 percent year-over-year to ¥1,965.2 billion.

Canon reported that demand for office multifunction devices (MFDs) remained at around the same level as the previous year, while demand for laser printers continued to recover in emerging countries, centered on China. Demand for cameras shrank moderately while demand for inkjet printers remained at the same level as the previous year.

During the second quarter, office MFDs enjoyed solid demand, mainly for color models. The total sales volume of laser printers increased compared with the same period of the previous year amid recovering demand in emerging countries, supported by the increased sales of new models.

Within the Office Business Unit during the second quarter, unit sales of office MFDs increased from the same period of the previous year, supported by steady sales of newly launched small-office/home-office color A3 (12”x18”) imageRUNNER ADVANCE C3500-series models and A3 (12”x18”) imageRUNNER ADVANCE C5500-series models, launched in the previous year. Among high-speed continuous-feed printers, sales of the Océ-produced VarioPrint i300, a high-speed sheet-fed color inkjet press, increased year on year. As for laser printers, sales of both hardware and consumables increased from the same period of the previous year, supported by steady sales of new models which expand the product lineup. These factors resulted in total sales for the business unit of ¥470.7 billion, a year-on-year increase of 3.1 percent, while operating profit totaled ¥55.9 billion, a year-on-year increase of 17.4%. Sales for the combined first six months of the year totaled ¥928.4 billion, a year-on-year increase of 1.9 percent, while operating profit totaled ¥111.3 billion, a year-on-year increase of 20.6 percent.

Outlook

For office MFDs, demand for color models is expected to grow moderately, despite the contraction of the market for monochrome models. Looking at the laser printer market, demand for printers is expected to improve as the economy recovers.

Upon taking into consideration the impact of acquiring Toshiba Medical Systems Corp. (TMSC) and the current economic forecast, Canon projects full-year consolidated net sales in 2017 of ¥4,050.0 billion, a year-on-year increase of 19.1 percent; operating profit of ¥330.0 billion, a year-on-year increase of 44.2 percent; income before income taxes of ¥340.0 billion, a year-on-year increase of 39.0 percent; and net income attributable to Canon Inc. of ¥220.0 billion, a year-on-year increase of 46.0 percent.

See full results at Canon's Investor Relations site.