Canon reports second quarter decline

Canon Inc. reported a decline in net profit for the second quarter, reflecting decreased revenue due to the appreciation of the yen. In addition, the company has revised down its annual outlook. For the three-month period to June 30, Canon recorded a net profit of 83.673 billion yen, less than 89.857 billion yen in the same period last year.

Net earnings per share were 91.99 yen, compared with 91.83 yen per share in 2024. Profit before tax was 123.474 billion yen, down from last year’s 132.225 billion yen.

Canon recorded sales of 1.140 trillion yen, down from 1.167 trillion yen in 2024. Looking ahead, for the 12 months to Dec. 31, Canon has revised down its annual guidance. The company now expects a net profit of 330 billion yen, less than the earlier expectation of 333 billion yen.

In the imaging business unit, second-quarter results were:

• Net Sales: ¥260.7 billion, up 6.5% year-on-year, driven by strong sales of mirrorless cameras, notably the EOS R5 Mark II, EOS R50V, and Powershot V1, which emphasize video.
• Income Before Income Taxes: ¥40.1 billion, down 3.9% year-on-year due to yen appreciation.
• Growth Factors: Network camera sales grew significantly with steady market growth and pre-US tariff policy demand boost.

For six months:

• Net Sales: ¥472.8 billion, a strong increase of 12.5% year-on-year.
• Income Before Income Taxes: ¥72.4 billion, up 27.8% year-on-year.
• Segment Drivers: Continued strong demand for mirrorless cameras and network cameras

The Imaging segment showed solid sales growth, particularly in mirrorless and network cameras. Profitability improved significantly in the first half despite some quarterly decline attributable to currency effects. New product releases and market expansion, especially around video shooting capabilities, contributed to strong performance.

In the Printing Segment,  Canon’s net sales were ¥610.6 billion, down 6.7% year-on-year. Income before income taxes was ¥81.9 billion, down 1.3% year-on-year.

• Equipment sales for the production printing market decreased due to the absence of large-scale deals that were present in the prior year.
• Office multifunction device (MFD) unit sales decreased in Europe, where market conditions worsened, but overall business remained stable.
• Inkjet printer sales of refillable ink tank models remained strong.
• Laser printer sales declined, particularly affected by OEM partner inventory adjustments in the previous year.

• Net Sales: ¥1,221.6 billion, slightly down 1.1% year-on-year.
• Income Before Income Taxes: ¥160.0 billion, up 4.9% year-on-year.
• Segment Drivers: Improved profitability was supported by structural reforms implemented in the prior year, despite slight sales decline.