Canon has released its financial results for the second quarter of 2017 revealing an increase in net sales by 15.4% this year to ¥992.5 billion (US$8.98 billion).
According to the report, the increase was due to favorable market conditions along with the positive impact of acquiring Toshiba Medical Systems Corporation (TMSC). Additionally, gross profit increased from last year by 14.6% to ¥495.6 billion (US$4.48 billion) thanks to growth in sales caused by the revitalization of existing businesses and expansion of new ones.
The printer market remained at the same level as last year with a growing demand for color office multifunction devices (MFDs). In the first quarter of this year, Canon released a new model of color copier which strengthened the sales figures for the second quarter. Demand for inkjet printers also remained similar to the previous year due to an increase in sales of both refillable ink tank models and new models launched in 2016. The hardware market for laser printers continues to recover and sales of laser printers have increased compared to last year in both the second and the first quarters. This is due to recovering demand in emerging countries, particularly China.
The US-led recovery of the global economy, as well as increased sales of laser printers, lithography equipment, network cameras, and vacuum deposition equipment used in the production of OLED screens all contributed to the increase of net sales. Additionally, changes in exchange rates meant the yen was weaker against the U.S. dollar and the euro which helped improve net sales and operating profit.
The interchangeable-lens camera market continues to recover from the impact of last year, particularly in developed countries. The release of new technology including a new, highly rated, mirrorless camera led to overall sales growth for interchangeable lens cameras. Alternatively, sales of compact cameras decreased by 8%. However, specific models have been well received by the market which subsequently contribute to revenue growth.
Sales of semiconductor lithography equipment and manufacturing equipment for organic LED (OLED) displays grew from 12 units last year to 19 units this year. This increase was thanks to demand for as vacuum deposition equipment used in the production of OLED screens, semiconductors and flat-panel displays. The Canon Group also recruited the Toshiba Medical Systems Corporation (TMSC) for which there was a solid demand on developed countries. Although, the second quarter sales for TMSC were lower than for the first quarter, it still had a positive impact on profits.