Canon also reported a year-over-year increase in sales in its production printing business due to strong sales of its varioPRINT iX series of high-speed die-cut color inkjet printers. However, overall printing segment profit declined due to lower non-hardware sales.
Canon’s varioPRINT iX inkjet press
“During the first half of the year, we were unable to supply enough products to meet demand due to shortages of semiconductors and other parts and components, which was exacerbated by the shutdown in Shanghai,” Cannon said. “However, in the third quarter, we were able to produce more products than we had planned by introducing more design changes and procurement of optional parts.
“Increased product availability led to higher unit sales in each business, and combined with the weaker yen, revenue increased for the seventh consecutive quarter, to 996.1 billion yen, or 19.5%.”
Sales rose sharply to ¥81.4 billion, while net income rose 9.7 percent to ¥54.1 billion.
Results per class
in the Printing business departmentUnit sales increased year-over-year due to a recovery in demand for office MFDs following improvements in the supply of semiconductor chips. Revenue from services and consumables increased slightly compared to the previous year due to recovery in the office.
In the case of laser printers and inkjet printers, unit sales increased significantly compared to the previous year, recovering from a slowdown in production activities. However, consumer goods were down compared to last year due to reduced demand from customers working from home.
For equipment in the production printing market, sales of the varioPRINT iX series of high-speed die-cut color inkjet printers increased compared to last year.
These factors resulted in total sales for the business unit of ¥551.5 billion, an increase of 20.1% year-on-year, while income before income tax decreased by 29.9% year-on-year to ¥43.5 billion, an increase in the hardware ratio due to increased costs of parts and logistics, and stability of product supply. .
From the fourth quarter, the outlook for the world economy is expected to maintain a recovery trend. However, although the shortage of semiconductor chips is gradually improving, the outlook is uncertain due to the long-term Ukraine crisis, rising inflation, limiting consumption and rising interest rates.
Demand for office MFDs is expected to be strong in the markets where Canon operates. However, there are concerns that demand for laser printers and inkjet printers could be affected by the current economic slowdown and reduced demand from customers who work from home.
Considering the current economic outlook, although the printing business segment is expected to slow down in inflation and interest rate hikes, demand from other business segments is expected to continue.
More details here.