Canon showing a positive outlook
April 26, 2018
The OEM published their first quarter results for the fiscal year 2018 declaring an increase in MFD unit sales and showing a positive outlook for future export markets.
Canon explained that looking back at the global economy in the first quarter of 2018, the U.S. economy continued to grow steadily as corporate earnings and employment conditions improved. In Europe, the economy remained stable as exports and capital investment increased. The Chinese economy grew steadily due to robust consumer spending, and the economies of India and Southeast Asian countries showed signs of recovery. In Japan, capital investment increased moderately and consumer spending improved.
Canon continued to explain that under these conditions, first-quarter net sales decreased by 1.2 percent year-on-year to ¥960.7 billion ($8.78 billion/€7.21 billion). The gross profit decreased by 4.9 percent year-on-year to ¥444.7 billion ($4.06 billion/€3.34 billion). Operating expenses decreased by 6.8 percent year-on-year to ¥367.6 billion ($3.36 billion/€2.76 billion). First-quarter operating profit increased by 5.3 percent to ¥77.1 billion ($705.4 million/€579.5 million). Income before income taxes increased by 9.9 percent year-on-year to ¥85.8 billion ($785.1 million/€644.9 million).
During the first quarter, unit sales of office MFDs increased compared with the same period of the previous year, with colour-model office MFDs achieving higher growth than the market average. Total sales volume of laser printers increased compared with the same period of the previous year, supported by the expanded sales of high-end models.
Looking at inkjet printers, although refillable ink tank models grew steadily, mainly in emerging countries, unit sales decreased compared with the same period of the previous year.
Looking at Canon’s first-quarter performance by business unit, starting with the Office Business Unit, unit sales of office MFDs increased from the same period of the previous year, supported by expanded sales of next-generation colour models designed to strengthen the product line-up, such as the A3 (12”x18”) imageRUNNER ADVANCE C5500 series.
As for laser printers, although unit sales increased steadily compared with the same period of the previous year, supported by steady sales of new models that achieve low power consumption, compact body designs and high productivity, the sales of consumable decreased compared with the same period of the previous year due to particularly high level of sales for the same period of the previous year.
These factors resulted in total sales of ¥457.7 billion ($4.18 billion/€3.43 billion). for the business unit, the same level as the previous year, while operating profit totalled ¥53.0 billion ($484.9 million/€398.3 million), a year-on-year decrease of 4.3 percent.
Describing the outlook from the second quarter onward, Canon said that it believes that the U.S. economy is expected to grow steadily due to improvements in corporate earnings and capital investment thanks to tax reform. The European economy is expected to recover slowly due to the uncertainty surrounding the U.K.’s decision to leave the EU, although exports are expected to increase.
Looking at China, the economy is expected to continue growing through solid consumer spending and changes in fiscal policy, while emerging economies, such as those of Russia and Brazil, are expected to maintain steady growth due to the recovery of natural resource prices.
With regard to the Japanese economy, the outlook indicates a trend of gradual recovery supported by recovery of consumer spending as employment conditions and personal income improved. Overall, the global economy is expected to grow moderately, despite such concerns as geopolitical risks and protectionism.
For office MFDs, colour models are expected to enjoy solid demand despite the contraction of the market for monochrome models, leading to the same level of demand overall compared with the previous year. Looking at the laser printer market, demand for printers is expected to continue to improve in emerging countries, resulting in overall demand remaining at the same level as that of the previous year.
With regard to inkjet printers, demand is expected to improve moderately in emerging countries as the market expands.
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