The OEM released their quarterly results statement for the second quarter ending 30 June 2017 showing net sales of ¥992,473 million ($8.9 billion/ €7.6 billion) up 15.4 percent on the same period in 2016.
In Canon’s second quarter in review report, the OEM reflects on how the U.S. economy continued to grow steadily as employment conditions and corporate earnings continued to improve. In Europe, the economy continued to recover moderately, centred on Germany and the U.K. The Chinese economy rallied due to public investments, and the economies of emerging countries realized moderate growth. In Japan, corporate earnings improved and consumer spending showed signs of recovery. As a result, the global economy overall continued to realize moderate growth.
During the second quarter, office MFDs enjoyed solid demand, mainly for colour models. The total sales volume of laser printers increased compared with the same period of the previous year amid recovering demand in emerging countries, supported by the increased sales of new models.
Looking at inkjet printers, sales volume remained at approximately the same level as the previous year, thanks to such factors as increased sales of refillable ink tank models for emerging countries and new models launched in the previous year.
Net sales for the first half of the year increased by 18.6 percent year-on-year to ¥1,965.2 billion ($ 17.64 billion/ €15.06 billion). Although the gross profit ratio dropped by 0.4 points to 49.9 percent due to the effect of the product mix, gross profit increased by 14.6 percent year-on-year to ¥495.6 billion ($4.4 billion/ €3.7 billion).
Basic net income attributable to Canon Inc. shareholders per share was ¥63.53 ($0.58/ €0.50) for the second quarter, a year-on-year increase of ¥14.59 ($0.13/ €0.11), and ¥113.98 ($1.02/ €0.87) for the first half, a year-on-year increase of ¥39.41 ($0.35/ €0.30).
Looking at Canon’s second-quarter performance by business unit, beginning with the Office Business Unit, unit sales of office MFDs increased from the same period of the previous year, supported by steady sales of newly launched small-office/home-office 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 colour inkjet press, increased year on year. As for laser printers, sales of both hardware and consumables increased from the same period of the previous year, supported by steady sales of new models which expand the product lineup.
Canon’s predictions for the third quarter onward is, that the U.S. economy is expected to continue recovering as employment conditions and consumer spending steadily improve. The European economy is expected to recover slowly due to increasing uncertainty surrounding the U.K.’s decision to leave the EU. Looking at China, the economy is expected to stabilize through changes in fiscal policy, while emerging economies, such as those of Southeast Asia, Russia and Brazil, are expected to recover. With regard to the Japanese economy, the outlook indicates a trend of gradual recovery supported by improved employment conditions and corporate earnings. Overall, the global economy is expected to recover more firmly than the previous year, despite such concerns as increasing geopolitical risks.
In the businesses in which Canon is involved, for office MFDs, demand for colour models is expected to grow moderately, despite the contraction of the market for monochrome models. Looking at the laser printer market, demand for printers is expected to improve as the economy recovers.
With regard to inkjet printers, the trend of decreasing demand is expected to gradually bottom out.
Canon projects full-year consolidated net sales in 2017 of ¥4,050.0 billion ($36.36 billion/ €31.04 billion), a year-on-year increase of 19.1 percent.