Canon Posts 89% Gain In First-Half Earnings
May 12, 2011
TOKYO-- Canon Inc., a Japanese maker of printers, said its consolidated net income jumped 89% in the first half on a 21% increase in sales. Double-digit sales growth for all of its products and slimmer operations underpinned its results, Canon said. Net in the latest half totaled 40.29 billion yen ($371.4 million), compared with 21.30 billion yen in the year-earlier period. Sales totaled 1.221 trillion yen, up from 1.011 trillion yen. Pretax profit rose 78%, while operating profit jumped 69%. The company said the weakening of the yen boosted group sales by 106 billion yen in the latest period, with price cuts overseas eliminating part of the sales gains. The spokesman said that in addition to the benefits from foreign-exchange fluctuations, increased sales of products with large profit margins helped improve the company's operating balance sheet. Operating profit came to 8.3% of sales in the latest half, compared with 5.9% in year-earlier period. Sales of cameras increased 24% to 95.97 billion yen, while sales of computers and computer peripheral equipment, buoyed by steady demand for printers, surged 30% to 409.12 billion yen. The company's data, communications and system-equipment division saw sales jump 20% to 216.29 billion yen, while sales of optical devices and other products rose 28% to 98.97 billion yen.
