COVID-19: Canon has mixed results
April 23, 2020
The OEM has released its Q12020 results where the global coronavirus pandemic has had an impact. Inkjet boosted by remote working and learning, laser sales down despite new models and MFD sales were sluggish.
Canon explained that in the first quarter of 2020, the period ended 31 March 2020, the global economy rapidly declined due to limited economic activity caused by the coronavirus disease (“COVID-19”) global pandemic.
Looking at its first quarter results, Canon explained that although sales of office MFDs were sluggish, the market for the production printing business remained solid. As for laser printers, despite expanding sales of new models, overall unit sales were below those of last year in the same period, due to the impact that COVID-19 had on production. As for inkjet printers, unit sales were above those of last year in the same period thanks to a rise in demand linked to remote working and learning in developed countries and China.
Canon’s first-quarter net sales decreased by 9.5% year-on-year to ¥782.3 billion ($7.26 billion/ €6.73 billion). Gross profit as a percentage of net sales rose by 0.6 points to 45.8%.
Looking at Canon’s first-quarter performance by business unit, in the Office Business Unit, unit sales of office MFDs were below those of last year in the same period due to delays in business negotiations and equipment installations. It also reflected the impact of office closures due to the spread of COVID-19, Canon added.
As for laser printers, unit sales were below those of last year in the same period, despite being led by new products that pursue not only low-energy consumption and compact form factors, but also high productivity. Canon said this also reflected a decline in sales of low-speed models in China due to the ongoing economic slowdown as well as the impact that COVID-19 had on production.
Sales of consumables also declined, reflecting impact from the global economic slowdown. These factors resulted in total sales for the business unit of ¥397.6 billion ($3.69 billion/ €3.42 billion), a year-on-year decrease of 9.4%, while income before income taxes increased by 2.4% year-on-year to ¥47.3 billion ($439.41 million/ €407.05 million) due to cost reduction.
Canon in light of the COVID-19 pandemic, Canon decided to revise its consolidated financial results forecast for the fiscal year ending 31 December 2020, to undetermined. Going forward, once it become possible to provide a consolidated results forecast, Canon will make an announcement.
Categories : City News
Tags : Business Canon Financials OEM
