Canon Reports Q2 Earnings, Cuts FY16 Forecast

July 26, 2016 — Canon Inc. reported results for its fiscal second quarter and first half ended June 30, 2016. For the quarter, net sales were down 11.7 percent to ¥860.2 billion, and net income was down 21.6 percent to ¥53.4 billion. For the first half, net sales were down 9.5 percent to ¥1,657,476 billion.

For the Office Business Unit, Canon noted that “unit sales for office MFDs overall increased from the same period of the previous year thanks to strong sales of color models led   by small-office/home-office color A3 imageRUNNER ADVANCE C3300-series models that were launched in the previous year, and the imagePRESS C10000VP series, which targets the production market.” Laser printer sales continued to decrease due to the “impact of economic stagnation in emerging countries,” but Canon reported a shift in its sales strategy to expanding sales of high-added-value models in developed countries to counter the decline. However, overall sales for the business unit decreased 15 percent year over year to ¥456.4 billion and operating profit decreased 40 percent, totaling ¥47.6 billion. Sales for the first six months totaled ¥910.7 billion, a decrease of 14.6 percent, and operating profit for the first six months totaled ¥92.3 billion, a decrease of 39 percent.

Canon expects demand for office MFDs to “expand moderately, mainly for color models, while demand in the laser printer market is expected to remain low for the time being.” The firm revised its full-year 2016 projections downward, and is now projecting net sales of ¥3.52 trillion.

Read the full report here.