canon-financial-results

Canon Q1 FY2017 Headlines

  • Overall company Net Sales up y-on-y +22.0%
  • Overall company Operating Profit y-on-y +88.8%
  • Imaging System segment Net Sales up y-on-y +3.1%
  • Imaging System segment Operating Profit up y-on-y +49.0%

Some good figures coming out of Canon Inc. for the first quarter of 2017. Last years negative effects of the rising ¥en have subsided and stable global markets have allowed for some growth. Core businesses have had some growth but the new businesses have been much stronger performers.

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Q3 FY2016 Headlines

  • Overall company Operating Profit fall -48.2%
  • Overall company Net Sales fall -15.9%
  • Imaging System segment year-on-year Net Sales fall -17.9%
  • Imaging System segment Operating Profit fall -28.4%

The headline figures look bad but despite the reduced sales and profits, at least all of the 3 main business segments are running a positive operating profit. The previous outlook for Q3 was clear that the markets were deteriorating and the forecast was revised down. The specific challenges were a slowdown of the global economy, post-Brexit uncertainty, rising value of the ¥en and production issues due to the Kumamoto earthquake. All of these continued to have a negative impact on sales in the third quarter results.

Todays consolidated results for Q3 FY2016 give a further insight into just how difficult conditions are for camera manufacturers. In Q2 FY2016 year-on-year net sales for the Imaging System segment fell -13.5%. Would Q3 see a deterioration or would the business bounce back?

At the beginning of FY2016 projections for the full year 2016 were for a fall of -8% Gross Sales Value and -16% in Total Units in the Imaging System segment. This fall was to be mainly due to the demise of the Fixed Lens Compact Camera that was expected to fall -24% by Units in 2016 under intense competition from the Smart Phone.

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  • Q2 2016 Imaging System segment year on year net sales fall -13.5%
  • Operating profit Imaging System segment down -14.4%
  • Overall company net sales -11.7%

It has been evident as the year has progressed that Canon would face greater challenges to sustain their financial figures. Strengthening ¥en, earthquake disruption to production and general falling market for stand alone cameras have all proved challenging.

Todays consolidate results for Q2 FY2016 give a further insight into just how difficult conditions are for camera manufacturers. In Q1 FY2016 year on year net sales for the Imaging System segment fell -10.6%. Would Q2 see a deterioration or would the business bounce back?

At the beginning of FY2016 projections for the full year 2016 were for a fall of -8% Gross Sales Value and -16% in Total Units in the Imaging System segment. This fall was to be mainly due to the demise of the Fixed Lens Compact Camera that was expected to fall -24% by Units in 2016 under intense competition from the Smart Phone.

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  • Q1 2016 year on year net sales fall -10.6%
  • Operating profit down -32.6%
  • Overall company net sales -7%

The first indication of what 2016 will bring for Canon was contained in their Q1 FY2016 financial report just released. Expectations were for a significant fall in the imaging segment so lets see how they got on.

Projections in the last report for the full year 2016 were for a fall of -8% Gross Sales Value and -16% in Total Units. This fall was to be mainly due to the demise of the Fixed Lens Compact Camera that was expected to fall -24% by Units in 2016 under intense competition from the Smart Phone.

canon powershot G5x
  • Overall sales increase by 2% on 2014
  • Operating profit down by -2.3%
  • Digital Camera sales fall by -9.1% by value

Canon Inc post their full year results up to 31st Dec each year. Overall sales are fairly flat with Office and Imaging Systems falling whilst Industrial activity is filling the gap. Investment in new businesses will be the key to growth in the near future.

The company is organised into 3 segments, Office, Imaging System and Industry and others. Digital Cameras are part of the imaging segment along with Ink Jet Printers. Sales of Imaging Systems account for 33% of all sales. Of these sales Digital Cameras account for 60% and Ink Jet Printers 31%. So Digital Cameras account for less than 20% of all Canon sales.