Canon Reports Strong Growth in Q2

Canon Reports Strong Growth in Q2

According 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%.

Related:

• Canon Reveals Full Year Results for 2020
• Canon Revised Results Forecast
• Canon Reports Mixed Q1 Results Due to COVID-19

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