Canon Reveals Full Year Results for 2020

Canon Reveals Full Year Results for 2020

According to the announcement, Canon reveals that sales of multi-functional devices (MFDs) for the office and production printing market both decreased in 2020, although they showed signs of recovery since the second half of the year.

Some highlights include:

• Net sales for the year decreased by 12.1% year-on-year to JPY¥3,160.2 billion (US$30.42 billion).
• Gross profit as a percentage of net sales decreased by 1.3 points to 43.5%.
• Gross profit for the year decreased by 14.5% year-on-year to JPY¥1,375.9 billion (US$13.24 billion).
• Operating expenses decreased by 11.9% year-on-year to JPY¥1,265.3 billion (US$ 12.18 billion), due to the further promotion of efficiency for expenses throughout the entire Group.
• Operating profit decreased by 36.6% year-on-year to JPY¥110.5 billion (US$ 1.06 billion), exceeding the prediction which had been revised upward in the most recent forecast.
• Other income (deductions) decreased by JPY¥1.3 billion (US$ 12.5 million) to JPY¥19.7 billion (US$ 198.6 million), mainly due to decrease of interest and dividend income, while income before income taxes decreased by 33.4% year on year to JPY¥130.3 billion (US$ 1.25 billion).
• Net income attributable to Canon Inc. decreased by 33.3% year on year to JPY¥83.3 billion (US$ 801.77 million).
• Basic net income attributable to Canon Inc. shareholders per share was JPY¥79.37(US$0.76) for the year, a year-on-year decrease of JPY¥37.42(US$ 0.36).
• Cash and cash equivalents decreased by JPY¥5.1 billion (US$ 49.09 million) to JPY¥407.7 billion (US$ 3.92 billion) from the end of the previous year.

Looking at Canon’s full-year performance by business unit, total sales for the Office Business Unit was of JPY¥1,440.2 billion (US$ 13.86 billion), a year-on-year decrease of 17.8%, while income before income taxes decreased by 49.3% year-on-year to JPY¥86.5 billion (US$ 832.57 million).

Unit sales of laser printers, both monochrome and color models, were below those of the previous year. Sales of services and consumables also declined resulting from the moderate recovery in customers’ print volumes after the cancellation of office closures in response to the spread of COVID-19 and the resumption of corporate activities.

As for inkjet printers, unit sales, including refillable ink tank models, were significantly above those of the previous year due to the recovery in demand in some emerging countries on top of the demand for remote working and education in developed countries and China.

Outlook

Upon taking into consideration the current economic forecast and the aforementioned currency exchange rates, Canon projects full-year consolidated net sales of JPY¥3,400.0 billion (US$ 3.27 billion), a year-on-year increase of 7.6%; operating profit of JPY¥158.5 billion (US$ 1.53 billion), a year-on-year increase of 43.4%; income before income taxes of JPY¥176.5 billion (US$ 1.70 billion), a year-on-year increase of 35.5%; and net income attributable to Canon Inc. of JPY¥115.0 billion (US$ 1.11 billion), a year-on-year increase of 38.0%.

Related:

• Canon Revised Results Forecast

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