canon-financial-results

Canon Q2 FY2017 Headlines

  • Overall company Net Sales up y-on-y +15.4%
  • Overall company Operating Profit y-on-y +40.4%
  • Imaging System segment Net Sales down y-on-y -1.7%
  • Imaging System segment Operating Profit up y-on-y +12.2%
  • Sales of Mirrorless cameras grew by more than +70% in H1 2017

Canon Inc. continue to post improved results for the second quarter of 2017. Overall Sales are up and better still profits rise by +40.4%. Office products continue to perform strongly and the Industry sector returned a profit. The newly classified Medical sector is still 'finding its feet' and made a nominal profit. So the ongoing structural reforms are making good progress in a challenging market. What about the imaging sector?

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.

canon news
  • 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.

canon news
  • 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.