Canon’s net profit fell by a third

Canon has published a report for the next quarter. Since this was the fourth quarter of 2020, the report also contains data for the year as a whole.

Quarterly revenue on an annualized basis remained almost unchanged, being less than in the fourth quarter of 2019, just 0.8%. At the same time, the operating profit was increased by 45.4%, and the net – by 64.3%.

In terms of full year 2020, revenue was $ 30.387 billion. This is 12.1% less than in 2019. Operating income for 2020 was $ 1.063 billion, 36.6% less than reported in 2019. Net income after taxes in 2020 was $ 801.1 million. This indicator decreased by 33.3% in comparison with the previous year.

The authors of the report note the negative impact of the COVID-19 pandemic. According to them, the gradual recovery in the main markets for Canon products began only in the second half of the year.

If we look at the dynamics by line of business, sales of office printers and MFPs, as well as supplies for them, decreased compared to 2019 due to the closure of offices. Digital camera sales also declined, but they exceeded expectations in the second half of the year, driven by consumer interest in the full-frame mirrorless EOS R5 and EOS R6. Due to the shift to remote work and training, sales of inkjet consumer printers were significantly higher than in 2019, but sales of medical equipment decreased. The report noted strong demand for lithography equipment for the production of semiconductor products and OLED panels. At the same time, sales of lithographic equipment for the production of liquid crystal panels decreased compared to 2019.