Canon’s Printing Business Unit posted an increase in revenue but profit was down, “reflecting a significant increase in parts and logistical costs, and a decline in consumables sales, as home demand for inkjet printers peaked out.” However, production printing remained a bright spot, with “an increase in the number of dealers that handle our large format printers, and subsequent growth in sales.”
Canon's Colorado 1650 wide format printer
In its financial statement for 2022, Canon said total net sales increased by 14.7% year-on-year to ¥4,031.4 billion due to adjustment of product prices and depreciation of the yen. Net income attributable to Canon Inc. increased by 13.6% year-on-year to ¥244.0 billion.
“In 2022, the business environment remained challenging as it was hit by various headwinds, such as the spread of Omicron early in the year, Russia’s invasion of Ukraine, Shanghai’s lockdown, and accelerated global inflation,” Canon said.
“However, even in this unstable environment, demand for our products generally remained solid. As for the product supply issue, in response to the shortage of semiconductors and other components, we made steady progress in numerous areas such as redesigning products and procuring alternative parts. Additionally, in a concerted group-wide effort, we took quick steps to secure transportation space and utilize alternative transportation routes in response to logistical constraints. As a result, we were able to increase our product supply each quarter, and many of our businesses saw an increase in sales volume from the previous year.
“Inflation, and responding to supply shortages and logistical constraints, led to a significant increase in parts and logistical costs. However, we were able to absorb some of this impact by appropriately adjusting selling prices.
Business Units
“As for Printing, although revenue was up significantly, due to growth in the unit sales of each product, profit was down, reflecting a significant increase in parts and logistical costs, and a decline in consumables sales, as home demand for inkjet printers peaked out.
Amid concern that the commercial printing market will also be impacted by economic slowdown, we are seeing acceleration in the shift from analogue to digital printing, which is more cost effective and less labour intensive.
In 2022, fourth quarter sales exceeded 100 billion yen for the first time on a quarterly basis. And for the full year, sales were above 360 billion yen, further highlighting this business as a driver of Printing growth.
Working with print service providers, our customers, we have raised the image quality and productivity of our products. This has led to orders for large equipment from major printing companies as well as an increase in the number of dealers that handle our large format printers, and subsequent growth in sales.
In 2023, we will continue to improve the performance of our existing products, introduce new products, and expand our dealer network to increase unit sales and our install base, which in turn will lead to service revenue growth."
“As for Imaging, although we were not able to supply interchangeable-lens cameras in the quantity that was needed, we were able to increase unit sales through new products, and significantly expand sales of interchangeable lenses. As a result, profitability significantly improved," Canon said.
“As for Medical, recovery in the capital spending of medical institutions led to strong orders and record high sales and profit.
“As for Industrial, although sales of FPD lithography equipment and OLED vacuum deposition equipment declined, growth in the unit sales of semiconductor lithography equipment led to an increase in profit and further improvement in profitability.”
