Canon Releases Q1 2017 Earnings

Today, April 27, 2017, Canon released their Q1 2017 Earnings Report and the following is Photizo’s summary.  On March 7-9, 2017 I attended Canon’s One Canon event held in Boca Raton, Florida where Canon executives reviewed their 2016 financial performance vs. 2015 and talked about new products, technologies and programs.

Canon’s Q1 2017 Earning Report reflects very much consistent with what I heard at their 2017 One Canon event so no surprises.  As Figure 1 shows 1Q 2017 Sales, Gross Profit, Operation Profit, and Net Income were all up from 1Q 2016 (see Figure 1)

Figure 1


Can Canon continue the positive trajectory beyond 1Q 2017?    Well, they believe so according to Figure 2 although Canon does not plan to achieve the % Operation Profit on Sales and Net Income on Sales that they achieved in 1Q 2017 but still very respectable.

Figure 2

However, for the period 1Q 2014 to 1Q 2017, Canon’s CAGR in sales from Q1 2014 to Q1 2017 was 1.0% and their Office (Laser printers) group CAGR for the same period was -.9% and the Imaging Systems business (includes inkjet printer business) CAGR was –1.6% for the same period (see Figure 3 and 4).

Figure 3











Figure 4

From an operating profit margin standpoint over the same period, for total Canon business, the CAGR was -.7% while the CAGR for the Office business was -2.2% (see Figure 5).


Figure 5


Looking at 1Q 2017 Office Printers (lasers) in terms, of unit shipments, the only segment that declined compared 1Q 2016 was monochrome copiers (see Figure 6).  The color mix appears to be over 50% in terms of units and revenue except for printer units.


Figure 6


Canon’s outlook for the remainder of 2017 for Office Products is more pessimistic as Figure 7 shows.

Figure 7







Figure 8 is a breakdown of product sales mix by Business Group for 1Q 2017 and Canon projections for 2017.

Figure 8


 Photizo is relatively optimistic about Canon’s printer business for 2017.  Canon has introduced many new imaging products recently and could possibly increase their market share of a declining market giving challenges at Ricoh and Toshiba.


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