Canon's Q3 2024 net income climbs 10.7% helped by US sales

Q3 FY 2024 Review by Canon
◼ In the markets which we compete, weak demand in China and Europe, but solid demand overall
◼ Sales of cameras, network cameras and laser printers, which recovered in second quarter, continued to grow steadily in third quarter
◼ Steady growth in commercial printing equipment sales where medium-to long-term market growth is expected
◼ Third-quarter sales up 5.3% from last year and at record high level, also achieved record high in YTD sales
◼ Operating profit up nearly 20%, operating profit ratio one point above last year

As for the global economy, although the European economy remains weak and the Chinese economy continues to slow down due to the real estate crisis, overall growth was stable, driven by the solid U.S. economy. In our markets, we saw the same weak demand in Europe
and China, but overall demand remained solid.

Our sales of cameras, network cameras, and laser printers, which recovered in the second quarter following the completion of inventory adjustments, increased in the third quarter, while sales of commercial printing equipment, where we see the market expanding over the
medium- to long-term, continued to steadily grow.

As a result, sales were up 5.3% compared to last year, and for the third quarter and year-to-date, we achieved record high sales.

As for operating profit, thanks to sales growth, profit was up nearly 20% and profitability improved by 1 point to 9.1%.

Third-quarter sales increased by 5.3% to 1 trillion 79.8 billion yen, mainly thanks to growth in laser printers and new businesses such as network cameras and commercial printing equipment.

As for gross profit, in addition to increased sales, the contribution of cost reduction in logistics costs and parts prices helped to absorb an increase in expenses due to higher labor costs and the promotion of structural reform.

As a result, operating profit increased by 18.8% to 98.2 billion yen.

Income before income taxes increased by 2.3% to 89.3 billion yen due to a deterioration in non-operating gains and losses associated with the yen’s appreciation since August.

However, net income increased by 10.7% to 68.8 billion yen.

Sales over the first 9 months of the year increased by 7.3% to 3 trillion 236.1 billion yen, exceeding our record high sales set in 2007.

Similarly, operating profit increase by 14.4% to 296.6 billion yen, income before income taxes increased by 12.6% to 310.8 billion yen, and net income increased by 18.8% to 218.6 billion yen.