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Canon reports slight decline in profit for 4Q12

January 31, 2013

canonOEM’s fourth quarter results for 2012 reflect tough economic conditions and lower sales.

RTT News reports that Canon has announced results for the fourth quarter of 2012 that show that the OEM’s net income fell by 0.4 percent to ¥61.17 billion ($672 million/€494 million) from ¥61.44 billion ($674.5 million/€496 million) in the previous year, with pre-tax income dropping by 3.8 percent to ¥89.11 billion ($978 million/€720 million).

The company’s net sales also fell by 1.4 percent to ¥951.39 billion ($10.4 billion/€7.68 billion) from ¥964.76 billion ($10.6 billion/€7.8 billion) in the fourth quarter of 2011, with Canon attributing this to increasingly challenging conditions across all of its businesses due to the recession, particularly in Europe; the high valuation of the yen against the euro; and the decrease in demand in China.

In terms of the overall fiscal results for 2012, net sales fell by 2.2 percent to ¥2.11 trillion yen ($23 billion/€17 billion), with net income on a consolidated basis decreasing 9.7 percent to ¥224.6 billion ($2.46 billion/€1.8 billion) and non-consolidated income falling nine percent to ¥157.6 billion ($1.7 billion/€1.27 billion).

While demand for laser printers remained low in Europe and the overall demand for inkjet printers slowed due to the economy, Canon reported that colour MFD sales grew in Japan, and expects conditions to improve during 2013 projecting consolidated net income to increase by 13.6 percent, net sales to grow by 9.5 percent and operating profit to increase by 26.6 percent to ¥410 billion ($4.5 billion/€3.3 billion).

The company said in a statement: “As for the outlook in 2013, while the challenging conditions from the previous year will continue, the global economy is expected to realise a moderate recovery in the latter half of the year.”

The Recycler also recently reported the fourth quarter results for Lexmark, which indicated that the company has suffered earnings lower than analysts originally forecasted as the company ceased its inkjet business to focus on its software division.

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