The OEM has released its third quarter results, recording revenue growth for the 7th consecutive quarter.
Canon Inc. reported total net sales of ¥996.1 billion ($6.77 billion/ €6.75 billion) for the third quarter, an increase of 19.5% year-on-year. Profits were up 16.3% year-on-year, at ¥451 billion ($3.06 billion/ €3.05 billion).
In the first half of the year, Canon said it was unable to supply enough products to meet demand due to the shortage of semiconductors and other parts and components, which was made worse by Shanghai’s lockdown. However, in the third quarter, by further promoting design changes and the procurement of alternative parts, Canon was largely able to produce products in the volume it had planned for. The increase in product supply led to higher unit sales in each business.
The printing business segment recorded net sales of ¥551.5 billion ($3.74 billion/ €3.73 billion) but had steep declines in operating profits. Although unit sales were up in this segment, Canon said that non-hardware sales were lower in the quarter and led to a decline in profits.
In the third quarter, Canon said that as it was able to increase production in line with its plan, unit sales of laser printers and inkjet printers exceeded those of last year by 20% and 30%, respectively.
However, in Europe, the United States, and Asia, Canon is seeing a decline in print demand due to the topping out of work-from-home demand. Additionally, Canon said it saw dealers and users move to tighten inventory due to concerns about the future of the economy and rising interest rates.
For the full year forecast, Canon lowered the sales projections and said for the printing segment: “Under this kind of economic environment, within our related businesses, we decided to reduce our sales plan for printing due to lower demand for laser and inkjet printer hardware, and non-hardware, including those linked to MFDs.”
