Canon Q2 Net Profit Down, Sales Rise; Lifts FY22 Outlook; Stock Down

Shares of Canon Inc. (CAJ) were losing more than 1 percent in Japanese trading after the imaging equipment maker reported Tuesday weak profit in its second quarter, despite higher net sales.

Further, the company lifted fiscal 2022 outlook.

For the second quarter, net income was 59.03 billion Japanese yen or $430.84 million, down 3.5 percent from last year’s 61.15 billion yen.

On a per share basis, earnings were 56.83 Yen or $0.41, compared to 58.46 yen last year.

Operating profit, however, climbed 27.4 percent to 98.48 billion Yen or $718.80 million from 77.27 billion yen last year.

Second-quarter net sales jumped 13.3 percent to 998.80 billion yen or $7.29 billion from last year’s revenues of 881.93 billion yen.

Looking ahead, Canon revised fiscal 2022 forecast upward to consolidated net sales of 4.08 trillion yen, a year-on-year increase of 16.1 percent; operating profit of 376.0 billion yen, a year-on-year increase of 33.4 percent; and net income attributable to Canon of 262.0 billion yen, a year-on-year increase of 22 percent.

The company previously expected net income of 252 billion yen, operating profit of 360 billion yen and net sales of 3.98 trillion yen.

The results for the fiscal year are projected to significantly exceed last year, reflecting continued strong demand for the products, even amid uncertainty about the global economy, which is linked to prolonged parts shortages and logistical constraints, and the Russia-Ukraine conflict.

The company resolved to increase its interim dividend by 15 yen per share to 60 yen, and its projected dividend for the fiscal year by 20 yen to 120 yen.

In Japan, Canon shares were trading at 3,200 yen, down 1.33 percent.

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