Canon Releases Q2 2021 Financials, Confirms It’s Better Than Expected


Canon releases the Q2 2021 financial results. As we already knew, things went better than expected. Thanks Edina for the tip.

Printer and camera sales raised the profits. Printer sales are doing good since a lot of people works form home because of the pandemic. Moreover, Canon confirms the “strong sales of the EOS R5 and EOS R6“.

Excerpts from Canon Q2 2021 reports:

As for the second quarter, unit sales of office MFDs and equipment for the production printing market were above those of the same period of the previous year. Sales of services and consumables also increased due to a recovery of corporate activity. As for the Prosumer consisting of laser printers and inkjet printers, unit sales of laser printers were below those of the same period of the previous year due to the stagnation of production activity, despite increased demand due to remote working. For inkjet printers, although unit sales were below those of the same period of the previous year, when demand in home use increased sharply due to the spread of COVID-19, sales were above those of the same period of the previous year due to an increase in sales of refillable ink tank printers. For interchangeable-lens digital cameras, unit sales were above those of the same period of the previous year in many regions due to strong sales of the EOS R5 and EOS R6 full-frame mirrorless cameras. As for network cameras, which are being used in a growing range of applications, sales increased due to the strengthening of sales activities.

More from the reports published by Canon:

As for the Imaging Business Unit, unit sales of interchangeable-lens digital cameras were above those of the same period of the previous year due to demand from customers who began photography as a hobby amid the COVID-19 pandemic, and strong sales of the EOS R5 and EOS R6. In addition, sales of interchangeable lenses increased significantly due to the expansion of the lens product lineup […]

Demand for cameras is growing steadily thanks to the strength of consumer spending in the United States and elsewhere, and the increasing number of people picking up cameras as a hobby and image expression as a new way of using time amid the COVID-19 pandemic. As a result, we raised our outlook for the size of the global camera market by 200 thousand units and now expect the overall size to be 6 million units for the full year.

In the second quarter, the share of total sales attributable to the EOS R5 and EOS R6, for which sales remain strong, has increased more than expected. In addition to this, the number of full-frame mirrorless camera users who purchase RF lenses has been accelerating since the launch of the R5 and R6, creating a situation where we cannot supply some products in a timely manner. From a longer perspective, in order to meet the strong demand for RF lenses as well as expand the range of image capture, a 400mm and a 600mm super-telephoto lens that combine high image quality and light weight, as well as a macro lens that delivers improved maximum shooting magnification of up to 1.4x were added in July. By continuing to enhance our lineup of RF lenses, which currently consists of 22 lenses, we will further strengthen our full-frame mirrorless camera system and increase our market share in this category.

As for our outlook, in response to strong demand for camera bodies, we raised our unit sales projection by 100 thousand units, and now project full year unit sales to be 3 million units. We also raise our sales projection to reflect strong sales of lenses. In unison with this, we will also strive to maintain stable profitability by continuing efforts to optimize expenses.

You can download all the Q2 2021 financial results and presentations from here.

Canon Q1 Financial Results: Imaging Profits Down 80% And It Will Get Worse (Covid-19 impact)

Canon Q1 Financial

Canon published the company’s Q1 2020 financial results, and things look everything but good. Once more it’s the COVID-19 impact.

It was clear that COVID-19 would have such an impact on profits of many companies, Canon not excluded. Indeed, the presentation starts with two statements that speak very clearly:

  • Spread of COVID-19 completely changes global economic landscape
  • Global economy faces worst recession since the Great Depression

The impact of Coronavirus is huge:

When we announced our projection back in January, due to factors such as the easing of U.S.-China trade friction, the UK avoiding the possibility of leaving the EU without a withdrawal agreement, and economic recovery in emerging markets, we expected the global economic environment to improve while understanding the potential downside risks.

However, the global spread of COVID-19 is casting a long shadow over people’s lives and as a result is having an enormous impact on economic activity and changing the face of the world economy. This is also the view of the IMF, who significantly downgraded its 2020 GDP growth projection from 3.3% back in January to -3.0%. This makes the global economy this year the worst since the Great Depression.

Looking back at the first quarter, the impact of COVID-19 first appeared with the suspension of operations at our production sites in China for both office equipment and cameras. Next, due to supply-chain disruptions, we could not avoid a decline in factory utilization rates in Asia, including Japan. As a result, we faced a situation of tight product supply. On the other hand, the impact on the market was initially limited to only some regions, like China, but expanded to other regions, including Europe and the U.S. This put a stop to global economic activity which had a significant impact on our product sales.

Canon operating profits from the imaging branch (cameras and inkjet printers) are down 80%, and Canon foresees even worse scenarios.

Also, from statements all over the financial results material, it’s clear that Canon puts a lot of stakes on the upcoming Canon EOS R5 (all information, known facts and rumors listed here).

Canon Q1 Financial

More information and downloadable material about Canon Q1 financial results can be found here.