Canon Reports Growth in Q3

Canon Reports Growth in Q3

According to Canon, net sales increased by 9.8% year-on-year to JPY¥833.3 billion (US$7.33 billion) in the third quarter (Q3). Net sales for the first nine months of the year increased by 15.5% year-on-year to JPY¥2,557.9 billion (US$22.50 billion). The gross profit margin increased by 3.4 points to 46.6%. Third-quarter gross profit increased by 18.4% year-on-year to JPY¥388.0 billion (US$3.41 billion).

“As for the third quarter, unit sales of office MFDs were below those of the same period of the previous year due to the shortage of semiconductor chips. However, sales of services and consumables moderately recovered due to the gradual return to in-person office work,” said the spokesman of Canon.

Other highlights include:

• Operating profit increased by 206.0% to JPY¥58.7 billion (US$516.44 million).
• Other income (deductions) increased by ¥17.0 billion year-on-year to JPY¥20.6 billion (US$181.24 million)
• Operating profit for the first nine months of the year increased by 502.0% to JPY¥206.6 billion (US$1.82 billion), while income before income taxes increased by 361.4% to JPY¥231.1 billion (US$2.03 billion) and net income attributable to Canon Inc. for the first nine months increased by 421.1% to JPY¥154.9 billion (US$1.36 billion).
• Basic net income attributable to Canon Inc. shareholders per share was JPY¥47.16 (US$) for the third quarter, a year-over-year increase of JPY¥31.23 (US$), and ¥148.16 (US$) for the first nine months, a year-on-year increase of JPY¥119.87 (US$).

In the Printing Business Unit, total sales for the business unit of JPY¥459.2 billion (US$4.04 billion), a year-on-year increase of 6.8%, while income before income taxes increased by 213.5%, a year-on-year to JPY¥62.1 billion (US$546.38 million). Sales for the combined first nine months of the year totaled JPY¥1,418.2 billion (US$12.48 billion), a year-on-year increase of 9.0%, while income before income taxes totaled JPY¥182.7 billion (US$1.61 billion), a year-on-year increase of 89.1%.

Cash flow from financing activities recorded an outlay of JPY¥140.0 billion (US$1.23 billion) mainly due to the repayment of long term debt and dividend payout.

Outlook

Taking into consideration solid demand, Canon’s 2021 full-year projection on a consolidated basis is net sales of JPY¥3,600.0 billion (US$31.67 billion), a year-on-year increase of 13.9%, which was maintained from its previous outlook. Full year projection of operating profit is JPY¥272.0 billion (US$2.39 billion), a year-on-year increase of 146.0%. Full-year projection of income before income taxes and net income attributable to Canon Inc. are JPY¥298.0 billion (US$2.62 billion), a year-on-year increase of 128.7% and JPY¥201.0 billion (US$1.77 billion), a year-on-year increase of 141.2%, which were maintained from its previous outlook due to valuation gain on securities.

Related:

• Canon Releases 2021 Interim Report
• Canon Reports Strong Growth in Q2
• Canon Reveals Full Year Results for 2020
• Canon Revised Results Forecast
• Canon Reports Mixed Q1 Results Due to COVID-19

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