Canon Shares Gloomy Report with Investors

Canon Shares Gloomy Report with Investors

As reported, Canon’s consolidated net sales in 2019 totalled JPY¥3,593,299 million (USD$33.36 billion), a decrease of 9.1% from the previous year largely due to the adverse effect of a shrinking market as well as unfavorable currency effects of foreign exchange rate fluctuation.

Some other highlights are as below:

• gross profit in 2019 decreased by 12.3% to JPY¥1,610,033 million (USD$14.95 billion) from 2018. Gross profit ratio dropped by 1.6 points to 44.8%
• Operating expenses decreased by 3.8% year on year to JPY¥1,435,366 million (USD$ 13.33 billion).
• Operating profit decreased by 49.1% to JPY¥174,667 million (USD$ 1.62 billion).
• Other income (deductions) increased by JPY¥1,133 million (USD$ 10.51 million), mainly due to currency exchange gains and losses compared with the previous year.
• Income before income taxes decreased by 46.1% year on year to JPY¥195,740 million (USD$ 1.82 billion) and net income attributable to Canon Inc. decreased by 50.5% to JPY¥125,105 million (USD$ 1.16 billion).

In 2019, overall unit sales of office MFDs increased slightly compared with the previous year, despite a decline in monochrome models, and thanks to market exceeding growth in color models. As for laser printers, although sales for new models were strong, overall unit sales decreased compared with the previous year, due to slowdowns in sales of low-speed models.

Looking at inkjet printers, despite expanding sales of refillable ink tank models, overall unit sales decreased compared with the previous year.

Some analysts are concerned that Canon’s results could also be reflected in annual reports by other OEMs in the year ahead, citing weaker demand being the main factor.

More information at https://global.canon/en/ir/annual/2019/canon-annual-report-2019-03.pdf

Related:

Canon Requests More Removals from Amazon

Canon Takes First Position with A3