January 27, 2016
The full year financial results saw the OEM report that the stable demand for MFPs was “mainly for colour models”, which “increased steadily” while the fall in demand for inkjets in emerging economies came “mainly in Asia” thanks to currency depreciation and “the slowdown in China”. Overall inkjet sales declined “in the face of continued harsh conditions”, while overall, net sales increased two percent to ¥3.8 trillion ($32 billion/€29 billion).
Operating expenses grew by 5.4 percent year-over-year to ¥1.5 trillion ($13 billion/€11 billion) due to currency issues, acquisitions and an “increase in R&D expenses related to new products”. As a consequence, operating profit fell 2.3 percent to ¥355.2 billion ($2.9 billion/€2.7 billion), while cash flow totalled ¥474.7 billion ($4 billion/€3.6 billion), a fall of ¥109.2 billion ($921 million/€847 million) compared to 2014 because of a “decrease in profit along with the increase in working capital”.
Studying the segments, Canon noted that the Office Business Unit, including office MFPs, saw sales increasing by 1.5 percent to ¥2.1 trillion ($17 billion/€16 billion), and operating profit fall only 0.5 percent to ¥290.6 billion ($2.4 billion/€2.2 billion). MFPs saw growth thanks to the aforementioned “strong sales” of colour printers, led by the SoHo-focused A3 imageRUNNER ADVANCE C3300 series and the imagePRESS C800 and 700 ranges of digital presses.
Unit sales of colour models “increased” alongside overall unit sales, including for monochrome machines “which had been facing decreasing demand”, though laser printers saw “total sales volume” fall because of “declining demand in emerging countries”. The Imaging System Business Unit meanwhile, which includes inkjet printers, saw sales fall 5.9 percent to ¥1.2 trillion ($10.6 billion/€9.8 billion), while operating profit fell 5.7 percent to ¥183.4 billion ($1.5 billion/€1.4 billion).
Canon commented that although it “has been working to expand sales through the company’s broad product line-up, ranging from home-use printers to MAXIFY-series business models”, total sales for the unit “declined due to the significant impact of shrinking markets, mainly in Asia”. In contrast however, the sales of consumables for inkjet printers “enjoyed solid demand”.
For the 2016 financial year, Canon believes that “although demand for colour office MF[P]s and production printers is expected to continue growing”, recovery in sales for products “largely sold in emerging markets”, including single-function laser printers, is “expected to take time”. It predicts net sales in 2016 of ¥3.8 trillion ($32 billion/€29 billion), an increase of 1.3 percent; operating profit of ¥360 billion ($3 billion/€2.7 billion), another increase of 1.3 percent; and net income of ¥230 billion ($1.9 billion/€1.7 billion), an increase of 4.4 percent.
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