Canon Financials Show Weak Yen, Rising Sales Drive Profit Growth

Canon Inc. has released its financial results for the first quarter of 2014 fiscal year. From January to March, the OEM reported 6.3% increase in net sales (¥868.3 billion/US$8.5 billion), compared with the same period last year. Net income totaled ¥47.6 billion (US$465 million), with 16.4% year-on-year (YOY) growth. Operating profit increased by 50.9% to ¥82.6 billion (US$807 million).

According to Washington Post, “Like other Japanese exporters, Canon got a perk from the falling yen, which lifts the value of its overseas earnings. But Canon and others cannot expect the dollar’s rise to continue at the same rate this year.”
Sales of Canon’s Office Business Unit totaled ¥509 billion (US$4.97 billion), with a YOY increase of 9.7%. Printer sales witnessed an 8.3% YOY growth (see below).

According to Canon, “For office MFDs, sales of color models increased from the year-ago period, led by the imageRUNNER ADVANCE C5200/C2200 Series. With regard to digital production printing systems, sales volume for the imagePRESS C6011/C6010 Series increased. As for high-speed continuous feed printers and wide-format printers, sales of the Océ ColorStream 3000 Series showed solid growth. Among laser printers, color multifunction models recorded healthy growth, contributing to a YOY increase in sales volume.”

Canon’s Imaging System Business Unit, which includes inkjet printers, reported ¥292.8 billion (US$ 2.8 billion) in sales, a 1.8% YOY decline　(see below). For inkjet printers, although sales volume declined from the same period in 2013, sales of consumables enjoyed healthy growth.

Canon suggests the U.S. and the European economy will see steady economic growth. China and other emerging countries will remain uncertain, but will continue to realize economic expansion. The Washington Post said a drop in demand in Japan was likely for 2Q2014, after the rush to buy ahead of the tax rise, but that it was expected to recover later in the year.