Canon’s Imaging System division had strong results in the...
Canon’s Imaging System division had strong results in the fiscal year ended Dec. 31 that it said Wednesday were due in part to continued strong global demand for interchangeable-lens cameras. Compact camera demand “shrunk not only in developed countries, but…
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also in China and some emerging nations,” it said in an earnings release. But “despite the significant deterioration of market conditions, sales volume remained at the same level as the previous year” for Canon’s compact models due to “robust sales” of the PowerShot Elph 110 HS and PowerShot A2300, it said. Sales of Canon’s interchangeable-lens cameras grew, driven by the “competitively priced” EOS Rebel series and the EOS 5D Mark III and EOS 60D advanced-amateur models, it said. Imaging System Q4 revenue grew 10.2 percent from Q4 2011 to $4.7 billion, while operating profit in the division grew 8 percent to $631.8 million. But Canon had weakness in its other divisions, and total company revenue dipped 1.4 percent to $10.9 billion and total operating profit fell 17.9 percent to $893.1 million. Revenue for the year slid 2.2 percent to $40 billion, while profit fell 9.7 percent to $2.6 billion, or $2.20 a share. Although there were “signs of improvement” in the U.S. economy in 2012, Canon said there were economic challenges in other countries that created a “harsh environment” for business. Demand for office color multifunction devices “showed growth” in Japan and other regions, but demand for laser printers “remained sluggish mainly in European markets” and demand for inkjet printers “waned due to the weak economy,” it said. Demand for semiconductor lithography equipment “remained restrained due to weak capital investment for memory devices,” while lithography equipment used in the production of flat panel displays (FPDs) “encountered sluggish demand” for large-size panels “despite the healthy market for mid- and small-size FPD panels used mainly in smartphones and tablet PCs,” it said. Canon predicted “the challenging conditions from the previous year will continue” in 2013. But it projected that there will be a “moderate recovery” of the global economy in the back half of the year. It predicted that demand for interchangeable-lens cameras will “continue increasing across all regions,” but the compact camera market will shrink further “due to economic conditions and the spread of smartphones.” The company expects to report 2013 revenue of $43.8 billion, a year-over-year increase of 9.5 percent, and profit will grow 13.6 percent to $2.9 billion.