Second-quarter net sales jumped 31 percent as Canon posted Q2 net income of 61.15 billion Japanese yen or $A750 million, compared to last year's Q2 loss of 8.84bn yen ($A110 million). In the production market, demand for printing posters and flyers increased in Europe and the US due to the reopening of stores and events.
Canon’s operating profit was 77.27 billion Yen, compared to a loss of 17.76 billion Yen in the prior corresponding period. Second-quarter net sales jumped 31 percent to 881.93 billion Yen.
“Looking back at the second quarter of 2021, the global economy trended toward recovery thanks to the rollout of vaccines in developed countries and the resumption of economic activities despite the continued spread of the coronavirus disease (“COVID-19”) pandemic,” Canon said.
“In the United States, economic recovery advanced as a result of the rapid normalization of economic activities and the continued increase in personal consumption and expansion of capital investment. In Europe, restrictions on economic activities were gradually eased in each country, and the economy began to recover due to such factors as an increase in exports. In China, the economic recovery continued as a result of the easing of government restrictions due to a decrease in the number of new infections and the continued expansion of domestic demand and exports. In other emerging markets, economic activities continued to stagnate due to the resurgence of COVID-19 variant infections, primarily in India. In Japan, despite the resurgence of infections, the economy continued to gain momentum as production activities and exports continued to recover."
Production Printing
“As for the production market, in 2021, demand for printing posters and flyers increased in Europe and the United States due to the reopening of stores and various events. And in the second half of the year, we expect a further pick-up in economic activity and print volume. From this, we expect the market to steadily recover.
“In line with the recovery in market conditions from the impact of COVID-19, we posted a second quarter increase in net sales. This reflects, among others, continued strong sales of printers like the ProStream 1800, a continuous feed press that was launched in the second half of last year, the varioPRINT iX, a high-speed cut-sheet inkjet printers, and the large- format printer, the Colorado 1650, which have all earned high marks from customers for offering both high productivity and print quality.
“In addition to further enhancing our lineup with the successive launch of new products since the beginning of this year, sales are expected to recover further in the second half of the year, as we increase the number of dealers handling large-format printers for graphic arts which allow us to reach new customers, mainly small and medium-sized printing companies.
In May 2021, Canon Production Printing Australia added the Colorado 1630 to its portfolio of 64” UVgel roll-to-roll printers for large format graphic providers.
Outlook
“Looking at the global economy from the third quarter onwards, while the progress of COVID-19 vaccinations is expected to support the resumption of economic activities, it will take time to see a full-scale recovery of the global economy,” said Canon. “In addition, there are risks of delay in the supply of semiconductor chips and of tight supply due to high demand for international freight transport. Under these conditions, economic prospects continue to remain uncertain throughout the world. However, the pace of the global economy is expected to recover moderately over the long term, supported by various economic measures and fiscal policies in each country and region.”
