Canon Q2 2022 Financial Results Published (RF lenses did the job)

Canon Q2 2022
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Here are the Canon Q2 2022 financial results. RF mount lenses led to a double-digit sales growth.

Says Canon about the business in general:

As for the second quarter, due to things such as the prolonged Russia-Ukraine conflict and Shanghai’s COVID lockdown, and accelerating global inflation, there is growing uncertainty about the future direction of the global economy. Despite this,
demand for our products remained firm. That said, the impact from Shanghai’s COVID lockdown was larger than expected, and we were unable to produce products in the quantity we planned for in the second quarter. Though this will
impact sales in the third quarter, we were able to expand sales in the second quarter by taking advantage of our inventory.
Net sales increased by 13.3% to 998.8 billion yen, or nearly 1 trillion yen. And we achieved our sixth consecutive quarter of net sales growth. As for profit, although the rise in material and logistical costs continue to affect us, in addition to adjusting prices, we raised the ratio of sales of high price range products, such as full-frame cameras and medium- to high-speed color MFDs.
Additionally, by controlling the rise in expenses even while sales were increasing, we increased operating profit by 27.4%, significantly raising it to 98.5 billion yen.

From Canon’s documentation, regarding the imaging business in Q2 2022:

As for the Imaging Business Unit, unit sales of interchangeable-lens digital cameras were below those of the same period of the previous year due to the shortage of products supply. However, unit sales of mirrorless cameras were above those of the same period of the previous year due to strong demand for the full-frame mirrorless cameras including the EOS R5 and EOS R6 and the favorable reviews of the new EOS R7. Unit sales increased significantly owing to strong sales of RF-series interchangeable lenses, which expanded the product lineup. As for network cameras, sales increased significantly mainly as a result of strengthening sales in response to diversifying market needs in addition to the recovery of products supply. As for professional video production equipment, sales of Cinema EOS-series including the new EOS R5 C, professional video cameras and broadcast
lenses, were strong. These factors resulted in total sales for the business unit of ¥200.9 billion, a year-on-year increase of 18.3%, while income before income taxes increased by 57.5% year-on-year to ¥32.9 billion mainly as a result of improved profitability due to an enhanced product mix. Sales for the combined first six months of the year totaled ¥358.1 billion, a year-on-year increase of 12.4%, while income before income taxes totaled ¥46.6 billion, a year-on-year increase of 19.7%

All financial documents are available here.

Canon Q3 2019 Financial Results – Sales Down, Profits Down

Canon Q3 2019 Financial
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Canon Q3 2019 financial results are in, and it doesn’t look good for Canon on the financial side of things.

At a glance:

We have actively launched new products in our core businesses throughout the year, including the third-quarter. And in each region, sales of these products have been in line with our plan, despite the macro environment becoming more challenging since our last earnings announcement in July. The effects of new products launched up to September of this year, have led to an improvement in our share of the MFD and laser printer markets and have contributed to improvements in our Medical System business performance.

The significant appreciation of the yen and prolonged U.S.-China trade friction, however, has led to a global economic slowdown, particularly in Europe and such emerging markets as China. As a result, net sales declined 6.2% to 869.5 billion yen, operating profit dropped 43.7% to 38.4 billion yen, and net income fell 42.7% to 26.5 billion yen.

Canon Q3 2019 financial

How are Canon’s imaging systems doing?

In the third quarter, our sales of interchangeable-lens cameras decreased 7% to 980 thousand units due to the impact of market contraction, mainly for entry-level DSLRs.

Amid market contraction, price competition surrounding higher-end full-frame models intensified due to the energy that each manufacturer is putting into this segment. In this kind of environment, and due to our stance to prioritize profitability, we posted third-quarter unit sales of higher-end models that were below our plan. However, we did expand sales, mainly for a popularly priced mirrorless camera that has secured the number one market share position, both in and outside of Japan. Furthermore, thanks to positive feedback we have also received for new mid-range cameras, we decided to maintain our full-year unit sales projection.

As for the full-frame mirrorless camera that we introduced last year, up to and including the third quarter, we have broadened our lineup of dedicated lenses by four in 2019. As a result, we have seen a steady rise in our lens-attach ratio. In the fourth quarter, through the launch of two new lenses, we will solidify the base from which we will expand sales of higher-end mirrorless cameras and use this opportunity to further strengthen activities aimed at accelerating sales.

Specifically, we will actively expand kit sales, which include higher-end cameras with the new lenses that were launched. Among them, we are seeing strong orders, particularly in North America, for the kit that includes a high-magnification zoom lens which covers a wide-range of image capturing situations from wide-angle to telephoto. On top of this, we are raising the appeal of our products, continuously making improvements to software which has a significant impact on performance, such as making available firmware upgrades that further improves the accuracy of autofocus. On top of these measures, we will work to encourage potential customers to purchase our products with a focus on digital marketing, through such activities as partnering with professional photographers using social media, and distributing videos that highlight the strengths of our optical technology.

Canon Q3 2019 financial

For the professional market, we are steadily enhancing our support system for sporting events, both in Japan and in other markets. And on this front, we are already earning high praise from professional photographers. Additionally, we will respond to the needs of professionals by launching a new flagship model as part of our EOS-1 series at the beginning of next year.

As for the full-year, although we kept our projection for unit sales unchanged, we expect sales and profit to be below our previous outlook due to changes in product mix and additional investments to expand sales in the fourth quarter.

As for compact cameras, we kept our previous full-year unit sales projection as our results have been in line with expectations. Even in the shrinking market, we exceeded the third quarter unit sales of last year of premium G series models that offer advanced video features, bringing new young people into our ecosystem. We will continue efforts to expand sales of our G series, which has relatively higher margins, and link this to improved profitability.

Canon’s latest financial results are available here.

Canon Financial Results Q2 2019 – The Times They Are A Changing

Canon Financial Results
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As anticipated, Canon had to adjust the expected sales figures for Q2 2019. And the published Canon financial results confirm it.

Canon’s sales figures for Q2 2019 aren’t exactly exciting with huge losses compared to Q2 2018 (see image on top). In Canon’s own words:

We still do not see any signs of improvement in the business environment that surrounds us. In fact, since our last earnings announcement, the situation surrounding U.S.-China trade friction has become more and more chaotic and economic slowdown in China and Europe has worsened. Furthermore, in the industrial equipment market, the recovery of customer capital investment has been pushed out further due to sluggish smartphone demand and continuing decline in memory prices.

About the imaging systems:

As for Imaging System, although we saw unit sales of mirrorless cameras grow at a higher rate than the market, sales and profit for the entire business unit declined, due to the impact of DSLR market contraction, particularly for entry-class models. Although the level of profit was low compared with the same period last year, by promoting the optimization of production and sales organizations in line with market changes, profitability did pick up from its bottom in the previous quarter.

  • Canon Financial Results
  • Canon Financial Results

The EOS M50 and the new EOS R line can not save the plummeting camera market.

More about Canon’s camera systems:

Looking at interchangeable-lens cameras, in addition to market contraction centered on entry-class DSLRs, in 2018 we launched three new products that led to a high level of sales in the second quarter of last year. As a result, unit sales for the second quarter this year were down 22% to 1.08 million.

Against this backdrop, we successively launched strategic full-frame models into the mirrorless camera market from the second half of last year. The introduction of a high-end model, further heightened our presence in the market and at the same time had a positive impact on overall sales of our mirrorless cameras.

On the other hand, in the full-frame category of the market where price competition is increasing, as a result of prioritizing profitability, unit sales were below our target. However, for interchangeable-lens cameras overall, our unit sales were in line with our plan. As a result, we retained our full-year projection for unit sales. In terms of revenue, we did lower our projection to reflect a change in product mix to our plan. However, in the second half of the year we will stimulate sales through the launch of new lenses.

Specifically, we will enhance our lineup launching 5 new lenses for mirrorless cameras. Through kit sales that leverage our broad range of mirrorless camera lenses and by bundling cameras with accessories like our lens adapter that makes it possible to use our existing rich lens lineup we will promote further expansion of mirrorless camera sales.
In addition, we will further strengthen our efforts to generate user interest in our mirrorless cameras. As a large percentage of high-end models purchases involve the customer actually handling the model and trying it out before buying, in major cities in Japan and other markets, we will create even more touch points for users, proactively expanding opportunities to actually experience our products.

Additionally, for professional photographers, we will foster trust in our products, offering, among others, enhanced support at international sports events.

Through these measures, we will further raise our presence in the market for high-end models, which will also have a rippling effect on more volume oriented cameras and subsequently link this to a further boost in sales.

As for compact cameras, sales were in line with our plan. As such, we maintain our full-year unit sales projection. Through the launch of new products, we will raise the proportion of sales attributable to premium G series models and link this to improved profitability.

All published information for Canon’s Q2 2019 financial results are here.

Canon Financials 2018, Market Going Down But Company Stands Ground, EOS R Key To Future Success

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Canon published the company’s financial reports for 2018.

Concerning the imaging sector:

Looking at the Imaging System Business Unit, although unit sales of interchangeable-lens digital cameras decreased overall compared with the previous year due to shrinking market, Canon maintained the top share of the overall interchangeable-lens digital cameras market, mainly in key countries in Europe and the Americas as well as in Japan and China. In mirrorless cameras, sales were strong for such new models as the EOS R, Canon’s first mirrorless camera equipped with a full-frame sensor, and the entry-class EOS Kiss M. As for digital compact cameras, although unit sales decreased compared with the previous year amid the shrinking market, sales of such high-value-added models as the PowerShot G-series enjoyed solid demand. For inkjet printers, unit sales of refillable ink tank models increased significantly in emerging markets. However, unit sales decreased overall compared with the previous year, mainly due to the shrinking market in developed economies. For large format inkjet printers, the imagePROGRAF TX series, which is suitable for outputting CAD drawings and poster designs, garnered high praise from the market and enjoyed solid sales. As a result, sales for the business unit decreased by 11.3% year on year to ¥1,008.2 billion, while income before income taxes decreased by 31.1% year on year to ¥121.3 billion

Canon looks considers “accelerating the expansion of our mirrorless lineup” a priority. In this sense:

The key to this is the EOS R, our first full-frame mirrorless model, launched in the second half of last year. Although its contribution to last year’s performance was limited, sales have been strong due to its significantly improved optical performance, which has been highly rated by users. In order to further increase our presence in the mirrorless camera market, this year we will continue to expand our entire mirrorless camera lineup, consecutively launching new R-System products, including lenses. Additionally, we will also promote change in the distribution of internal resources, from development to production as well as sales & marketing.

Additionally, we will work to improve product mix, raising the proportion attributable to full-frame models that have high profitability by enhancing our mirrorless camera lineup and also expanding sales of full-frame models, particularly the EOS R.

We expect the market for camera equipped with full-frame sensors, which offer superlative descriptive performance, to continue growing at a stable rate. The customer base of this market are particular about image expression and pair their cameras with various lenses depending on the images they intend to capture. We will strive to improve total profitability by expanding sales of the full-frame model like the EOS R which will lead to expanded sales of lenses that have high profitability.

Canon’s financial reports are available here. The presentation material can be viewed below:

Canon Financial Results For Q3 2018 Published, Sales Are Down A Bit, Still Looks Good

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Canon posted the financial results for Q3 2018. Things still look good for the company.

The Canon EOS M50 sells very good, and Canon acknowledges it.

Within the Imaging System Business Unit, Canon maintained the top share of the overall interchangeable-lens digital camera market, mainly in major countries in Europe and the Americas and in Japan. Within this, sales of mirrorless cameras increased mainly supported by sales of such new products as the EOS Kiss M [the EOS M50, editor’s note]. However, unit sales decreased overall compared with the same period of the previous year due to a temporary slowdown in demand, mainly for entry-level models. As for digital compact cameras, although unit sales decreased compared with the same period of the previous year amid the shrinking market, sales of high-value-added models such as the PowerShot G-series enjoyed solid demand. For inkjet printers, unit sales increased compared with the same period of the previous year, supported by steady sales of home-use models and refillable ink tank models due to the implementation of revised sales strategies tailored to each region. As a result, sales for the business unit decreased by 15.6% to ¥228.3 billion year on year, while operating profit totaled ¥21.4 billion, a year-on-year decrease of 45.3%. Sales for the combined first nine months of the year totaled ¥710.6 billion, a year-on-year decrease of 10.6%, while operating profit totaled ¥80.9 billion, a year-on-year decrease of 30.8%.

How’s the outlook for the imaging segment?

Upon taking into consideration the revised assumptions for sales for interchangeable-lens digital cameras, and postponement of capital investment in equipment by manufacturers in the Industry and Others sector, Canon projects full-year consolidated net sales of ¥4,000.0 billion, a year-on-year decrease of 2.0%; operating profit of ¥335.5 billion, a year-on-year increase of 4.3%; income before income taxes of ¥365.0 billion, a year-on-year increase of 3.1%; and net income attributable to Canon Inc. of ¥251.0 billion, a year-on-year increase of 3.8%.

canon financial
All Q3 2018 financial documents can be downloaded from here. An overview can be read below.

[pdf-embedder url=”https://www.canonwatch.com/wp-content/uploads/2018/10/conf2018q3e-all.pdf”]