Sales of MFPs Boost Canon’s Profit in Printing Business

Canon’s report on financial results for 2Q2014 show net sales decreased 4.1% year-on-year to ¥926.8 billion (US$9,176 million). Operating profit increased by 12.4% to ¥110.5 billion (US$1,095 million) while net income rose by 21.6% to ¥80.8 billion (US$800 million).

Sales for the Office Business Unit totaled ¥522.5 billion (US$5,173 million), a year-on-year increase of 0.5% over 2Q2013. Operating profit totaled 88.1 billion (US$872 million), increasing 15.7%. Analysts noted that sales of the color office MFDs (multifunction devices) remained firm led by the healthy growth of imageRUNNER ADVANCE C5200 Series printers. Among laser printers, although sales of monochrome models remained sluggish, color multifunction models recorded growth.

Sales for the Imaging System Business Unit declined by 13.9% to ¥332.4 billion (US$3,291 million) year-on-year, while operating profit totaled ¥51.0 billion (US$505 million), a reduction of 9.4%. As for inkjet printers, while sales volume fell owing to the market contraction in Japan caused by the consumption tax hike, sales of consumables remained at the same level as the previous year.

For the future, Canon expects demand for MFDs to expand moderately, mainly for color models. Likewise, demand in the laser printer market is also expected to continue growing moderately, centered on multifunction models. As for inkjet printers, the gradual recovery of the global economy is expected to bring an end to dwindling demand, with sales leveling off to remain in line with the previous year.

Canon asserted, “As for the outlook in the third quarter onward, there are signs of brightness among developed countries with the US projected to realize steady economic growth and the European economy centering on Germany and the UK expected to continue its moderate recovery. Although uncertainties remain in China and other emerging countries, they are expected to continue to realize economic expansion. As for Japan, the economy has been recovering from the rebound following the increase in the consumption tax, and is projected to continue to realize healthy growth for the full year. The global economy is also expected to continue its moderate recovery. ”