October 24, 2017 - Canon announced its financial results for the third quarter of 2017 and nine-month period ending September 30, 2017.
Net sales of ¥994.5 billion were up 27.7 percent from the year-ago period. Operating profit was ¥80.5, up 101 percent year over year, and income before taxes was ¥87.8 billion, up 94 percent. For the nine months, net sales of ¥2,959.7 billion were up 21.5 percent, with operating profit up 69.8 percent and income before taxes up 54.3 percent.
Office Business Unit
In its earning presentation, Canon noted unit sales of office MFDs increased from the same period of the previous year, supported by steady sales of newly launched 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 increased from the same period of the previous year, supported by steady sales of high-end models and significant sales growth in consumables. Inkjet printer unit sales also increased due to strong sales of new home-use models and refillable ink-tank models for emerging markets.
These factors resulted in total sales for the business unit of ¥444.3 billion, a year-on-year increase of 8.1 percent, while operating profit totaled ¥42.1 billion, a year-on-year increase of 47.3 percent. Sales for the combined first nine months of the year totaled ¥1,372.7 billion, a year-on-year increase of 3.8 percent, while operating profit totaled ¥153.4 billion, a year-on-year increase of 26.9 percent.
In the businesses in which Canon is involved, for office MFDs, demand for color models is expected to grow moderately despite the contraction of the market for monochrome models, leading to the same level of demand overall compared with the previous year. Looking at the laser printer market, demand for printers is expected to continue to improve in emerging countries as the economy recovers. For interchangeable-lens digital cameras, although demand continues to decrease primarily in developed countries, the pace of decline is gradually decelerating. Projections for digital compact cameras indicate continued market contraction, centered mainly on low-priced models, despite solid demand for high-value-added models. With regard to inkjet printers, the contracting market showed signs of bottoming out, with demand leveling off to remain in line with that of the previous year.
Upon taking into consideration the impact of acquiring TMSC and the current economic forecast, Canon projects full-year consolidated net sales in 2017 of ¥4,080.0 billion, a year-on-year increase of 19.9 percent; operating profit of ¥350.0 billion, a year-on-year increase of 52.9 percent; income before income taxes of ¥365.0 billion, a year-on-year increase of 49.2 percent; and net income attributable to Canon Inc. of ¥245.0 billion, a year-on-year increase of 62.6 percent.