Canon reported record first-quarter sales and operating profit but warned that new US tariffs could dent full-year performance.
The Tokyo-listed company said on Thursday that net sales for the three months to March rose 7.1% year-on-year to ¥1.06 trillion ($6.8 billion/ €6.4 billion), the highest ever for a first quarter. Operating profit climbed 20.5% to ¥96.5 billion ($620 million/ €580 million), with the operating margin improving to 9.1%, the strongest level in a decade.
The upbeat quarterly results were underpinned by a 30% increase in network camera sales, double-digit growth in laser printers and cameras, and a more than 10% rise in semiconductor lithography equipment sales.
But despite the strong start to the year, Canon downgraded its full-year outlook, citing the expected impact of a 10% additional tariff on imports into the United States from April to December. The US accounts for more than ¥1.2 trillion ($7.9 billion/ €7.3 billion) of Canon’s annual revenue.
Canon said it expects to absorb part of the tariff costs through price rises but conceded that higher prices would reduce sales volumes and weigh on demand.
The printing business posted a 5.3% rise in first-quarter sales to ¥611 billion ($3.9 billion/ €3.7 billion) and an 11.5% increase in operating profit. Growth was driven by stable laser printer sales and a sharp rise in demand for inkjet printers with refillable ink tanks, particularly in emerging markets.
However, sales of office multi-function devices (MFDs) fell 4.6% in the quarter due to the timing of large corporate deals. The company still expects a recovery in office hardware sales in the second half of the year, with a 5% full-year increase forecast.
