Canon Hit By WFH, Profits Down 32.3%
Canon has reported its first quarterly loss, with gross profits contracting by 32.3% and net sales were down 25.7% in Q2 2020. This was largely due to COVID-19 lockdowns, as fewer people went to the office and demand for printing declined.
Operating profit for the first half of the year decreased by 81.9%.
While Canon see more pain ahead, they do expect people buying more equipment for remote learning and working mitigating this somewhat.
“As for office equipment, print volume in the office will decline as more and more people work from home. With the increase in sales of inkjet printers for remote working and learning, however, we have been able to reconfirm that paper is still essential,” Canon stated.
Canon has already witnessed this trend in China, where demand has begun to recover, driven by continued remote working and learning.
Sales for Canon’s Office line of business fell by 30.2% in Q2 2020, while Imaging fell by 30.8% and Industry & Others declined by 22.4%.
While Canon has forecast a gradual recovery for office MFDs and laser printers, demand is expected to remain below last year.
In terms of interchangeable-lens digital cameras, Canon expects the overall market to continue to shrink, but will be launched two new models, which it hopes will buoy sales.