Canon Reports MFDs Sales Decrease in Q3

Canon Reports MFDs Sales Decrease in Q3

Despite the recovery sign, sales of MFDs for the office and production printing market both decreased during the third quarter (Q3), according to Canon.

“Unit sales of laser printers, particularly of color models, were below those of the same period of the previous year. Sales of services and consumables also declined due to a moderate recovery in customers’ print volumes after the resumption of corporate activities.” So says the company.

Some highlights include:

• third-quarter net sales decreased by 12.7% year-on-year to ¥9 billion (US$7.23 billion).
• Net sales for the first nine months of the year decreased by 16.1% year on year to ¥2,214.5 billion (US$ 21.11 billion).
• Third-quarter gross profit decreased by 16.0% year-on-year to ¥327.6 billion (US$3.12 billion).
• Operating expenses decreased by 12.2% year-on-year to ¥308.4 billion (US$2.94 billion), due to the further promotion of efficiency for expenses throughout the entire Group, despite negative effects of foreign currency fluctuation.
• Third-quarter operating profit decreased by 50.1% to ¥19.2 billion (US$ 183.02 million).
• Other income (deductions) decreased by ¥5.0 billion (US$47.66 million) to ¥3.6 billion (US$34.32 million), mainly due to currency exchange losses compared with the previous year, while income before income taxes decreased by 51.5% year on year to ¥22.8 billion (US$217.33 million) and net income attributable to Canon Inc. decreased by 37.2% year on year to ¥16.7 billion (US$159.18 million).
• Operating profit for the first nine months of the year decreased by 71.9% to ¥34.3 billion (US$326.94 million), while income before income taxes decreased by 65.3% to ¥50.1 billion (US$577.54 million).
• Net income attributable to Canon Inc. for the first nine months decreased by 67.8% to ¥29.7 billion (US$283.10 million).
• Basic net income attributable to Canon Inc. shareholders per share was ¥15.93 (US$) for the third quarter, a year-on-year decrease of ¥9.00 (US$), and ¥28.29 (US$) for the first nine months, a year-on-year decrease of ¥57.87 (US$).

In the Office Business Unit, laser printer unit sales, particularly of color models, were below those of the same period of the previous year as a result of continued economic slowdown caused by COVID-19. Sales of services and consumables also declined due to a moderate recovery in customers’ print volumes after the resumption of corporate activities.

As a result, total sales for the business unit of ¥335.9 billion (US$3.2 billion), a year on-year decrease of 21.0%, while income before income taxes decreased by 90.1% year-on-year to ¥4.1 billion (US$39.08 million).

Sales for the combined first nine months of the year totaled ¥1,041.0 billion (US$9.92 billion), a year-on-year decrease of 20.2%, while income before income taxes totaled ¥52.1 billion (US$496.67 million), a year-on-year decrease of 59.7%.

As for inkjet printers, sales of printers and consumables increased significantly from the same period of the previous year as a result of recovering demand in some emerging countries as well as the demand for remote working and education in developed countries and China.

These factors resulted in total sales for the business unit of ¥185.4 billion (US$1.77 million), a year-on-year decrease of 2.0%, while income before income taxes increased by 158.5% year-on-year to ¥26.9 billion (US$256.44 million) thanks to improvements in profitability. Sales for the combined first nine months of the year totaled ¥478.8 billion (US$4.56 million), a year-on-year decrease of 16.0%, while income before income taxes totaled ¥28.6 billion (US$272.65 million), a year-on-year decrease of 0.5%.

Outlook

Taking into consideration exchange rate assumptions, Canon’s first nine months performance, as well as current market conditions and sales prospects of new product, Canon’s 2020 full-year projection on a consolidated basis are net sales of ¥3,140.0 billion (US$2.99 billion), a year-on-year decrease of 12.6%; operating profit of ¥64.0 billion (US$610.09 million), a year-on-year decrease of 63.4%; income before income taxes of ¥86.0 billion (US$819.89 million), a year on-year decrease of 56.1%; and net income attributable to Canon Inc. of ¥52.0 billion (US$495.70 million), a year-on-year decrease of 58.4%, which were revised from the previous outlook.

Related:

• Canon Shares Fall 6% Following Q2 Results

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