Canon Reports Strong Growth in Q2

Canon Reports Strong Growth in Q2

Canon Reports Strong Growth in Q2

Canon Reports Strong Growth in Q2According to Canon, net sales increased by 31.0% year-on-year to ¥881.9 billion (US$8.03 billion) in the second quarter (Q2). Net sales for the first half of the year increased by 18.5% year-on-year to ¥1,724.6 billion (US$15.707 billion).

“We not only significantly exceeded our previous projection but also improved profitability compared with the first quarter,” said Toshizo Tanaka, Executive Vice President & CFO of Canon Inc.

Other highlights include:

  • The gross profit margin increased by 6.5 points to 47.4%.
  • Operating expenses increased by 16.1% year-on-year to ¥340.4 billion (US$3.1 billion) due to the effects of exchange rate fluctuations.
  • Operating profit totaled ¥77.3 billion (US$704.03 million) representing in a shift from an operating loss in the same period of the previous year to an operating profit.
  • Operating profit for the first half of the year increased by 877.6% to ¥147.8 billion (US$1.35 billion), while income before income taxes increased by 456.4% to ¥151.8 billion (US$1.38 billion) and first-half net income attributable to Canon Inc. increased by 707.9% to ¥105.6 billion (US$ 961.77 million).
  • Other income (deductions) decreased by ¥2.0 billion (US$18.22 million) year-on-year to ¥8.5 billion (US$77.41 million), due to such factors as valuation losses on securities, while income before income taxes totaled ¥85.8 billion (US$781.43 million) and net income attributable to Canon Inc. totaled ¥61.1 billion (US$556.48 million), with both incomes having recovered significantly from net losses in the same period of the previous year.
  • Basic net income attributable to Canon Inc. shareholders per share was ¥58.48 (US$0.52) for Q2, a year-on-year increase of ¥66.93 (US$0.61) representing in a shift from a loss in the same period of the previous year, and ¥100.99(US$0.92) for the first half, a year-on-year increase of ¥88.58 (US$0.81).

By segments, total sales for the Printing business unit was ¥489.6 billion (US$4.46 billion), a year-on-year increase of 24.5%, while income before income taxes increased by 229.5% year-on-year to ¥66.0 billion (US$601.14 million). Sales for the combined first six months was of the year totaled ¥959.0 billion (US$8.74 billion), a year-on-year increase of 10.1%, while income before income taxes totaled ¥120.6 billion (US$1.10 billion), a year-on-year increase of 57.0%.

Total sales for the Imaging business unit was ¥169.8 billion (US$1.55 billion), a year-on-year increase of 77.8%, while income before income taxes totaled ¥20.9 billion (US$190.37 million), representing a shift from a loss for the same period of the previous year to a profit.

Sales for the combined first six months of the year totaled ¥318.5 billion (US$2.90 billion), a year-on-year increase of 47.9%, while income before income taxes totaled ¥38.9 billion (US$354.34 million) resulting in recovery from a loss for the same period of the previous year.

As for the outlook, Canon projects full-year consolidated net sales of ¥3,600.0 billion (US$32.80 billion), a year-on-year increase of 13.9%; operating profit of ¥283.0 billion (US$2.58 billion), a year-on-year increase of 156.0%; income before income taxes of ¥298.0 billion (US$2.71 billion), a year-on-year increase of 128.7%; and net income attributable to Canon Inc. of ¥201.0 billion (US$1.83 billion), a year-on-year increase of 141.2%.


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