Canon Releases Q2 2022 Financial Results

Canon has released first quarter 2022 financial results to the Investor Relations page.

Presentation Material
Results
Supplementary Data

Imaging System Relevant Quotes from the Presentation Material

The impact from Shanghai’s COVID lockdown was larger than expected, and we were unable to produce products in the quantity we planned for in the second quarter. Though this will impact sales in the third quarter, we were able to expand sales in the second quarter by taking advantage of our inventory.

As for Imaging, unit sales of camera bodies, because of product shortages, remained below those of last year. However, supported by strong sales of interchangeable lenses, we posted double-digit growth in both sales and profit, and our operating profit ratio increased to 16.1%.

As for changes in foreign exchange rates, due to significant depreciation of the yen against the U.S. dollar and euro, which was approximately 20 yen and 6 yen, respectively, the impact on operating profit was a positive 28.2 billion yen.

As for parts shortages, we have been promoting measures, which include changing the design of our products in order to use alternative parts, and expanding our supplier base. However, due to Shanghai’s COVID lockdown, we have seen a new round of parts shortages, which has led to some delay in production of mainly printing equipment and cameras. For laser printers and cameras, where a full recovery by year-end is difficult to expect, though we lowered our projection for unit sales, we will adjust prices and shift sales to higher priced products through a change in product mix, to absorb some of the impact. And coupled with the tailwind of yen depreciation we raised our full-year projection for the entire company.

As for the camera market, the launch of new mirrorless cameras and interchangeable lenses by each company is supporting continued strong demand. However, due to the global shortage of parts since last year and Shanghai’s COVID lockdown, the supply of products has been insufficient to meet demand. As a result, we expect the market to be 5.45 million units, which is around the same level as last year.

In the second quarter, while the shortage of product supply caused camera body unit sales to continue to be below those of last year, we expect to turn to increase as production recovers from the second half of the year. Even under a situation of declining unit sales, we raised the ratio of full-frame mirrorless cameras for which we prioritize production and sales, and significantly increased RF lens sales to post a double-digit increase in net sales overall.

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