Canon’s latest financial report shows a massive 25% drop in sales

Apr 24, 2020

Dunja Djudjic

Dunja Djudjic is a multi-talented artist based in Novi Sad, Serbia. With 15 years of experience as a photographer, she specializes in capturing the beauty of nature, travel, and fine art. In addition to her photography, Dunja also expresses her creativity through writing, embroidery, and jewelry making.

Canon’s latest financial report shows a massive 25% drop in sales

Apr 24, 2020

Dunja Djudjic

Dunja Djudjic is a multi-talented artist based in Novi Sad, Serbia. With 15 years of experience as a photographer, she specializes in capturing the beauty of nature, travel, and fine art. In addition to her photography, Dunja also expresses her creativity through writing, embroidery, and jewelry making.

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Canon has published the financial results of the first quarter of 2020, and as it was probably expected – they’re not good. The results show that the sales have dropped by 25% in the Q1 of 2020. Of course, there’s an obvious cause of such poor results: the coronavirus.

In the quarterly report, Canon writes that the coronavirus pandemic has caused the global economy to decline. “The U.S. economy remained on a path of modest growth until February, thanks to the strong employment situation,” Canon writes. “It rapidly declined, however, from the beginning of March due to a drop in consumption caused by restrictions on people’s movement.” A similar fate happened to European, Chinese, and Japanese economies. And all of these are the markets where Canon mainly runs its operations.

According to Canon, demand for most of their products dropped due to canceled events and limited mobility. “The camera market declined at an accelerated rate, reflecting the market’s ongoing contraction so far and the impact of COVID-19,” Canon explains.

“Although top share of the interchangeable-lens digital camera market was maintained, unit sales were below those of last year in the same period, due to market contraction and the impact that COVID-19 had on production.”

The current situation caused the Canon’s first-quarter income (deductions) to decrease by ¥4.1 billion compared with the previous year, “mainly due to valuation losses on securities.” The overall income before income taxes decreased by 25.2% year-on-year and net income attributable to Canon Inc. decreased by 30%.

It’s no surprise that Canon is struggling right now. All companies are. For instance, according to a recent report, the mirrorless sales in Japan have dropped by approximately 50%. Canon has been experiencing difficulties ever since the pandemic has starter: they had to suspend some factories, the Japan HQ and offices, as well as some U.S. repair centers. The impact of the pandemic has caused severe production delays for most companies, and Canon wasn’t spared either: the launch of their long-awaited EOS R5 has been postponed.

If you’d like to go into more detail, you can see full Canon’s financial results for Q1 here.

[via Canon Rumors]

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Dunja Djudjic

Dunja Djudjic

Dunja Djudjic is a multi-talented artist based in Novi Sad, Serbia. With 15 years of experience as a photographer, she specializes in capturing the beauty of nature, travel, and fine art. In addition to her photography, Dunja also expresses her creativity through writing, embroidery, and jewelry making.

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6 responses to “Canon’s latest financial report shows a massive 25% drop in sales”

  1. Sebastiaan Bras Avatar
    Sebastiaan Bras

    It could be worse some has 100% income loss..

  2. Viggo Næss Avatar
    Viggo Næss

    All brands are in this kind of trouble, not just Canon, and more are much worse off ..

  3. Michel Falardeau Avatar
    Michel Falardeau

    I’m waiting for a good sale and I’ll “help” them out ?.

  4. Ryan Hartford Avatar
    Ryan Hartford

    Canon just came out with a $6500 camera and Immediately ran out of them, they are still hard to get your hands on one. And they are teasing the R5 now. So they cannibalized their premium product line a bit until the R5 comes out between people waiting on the new R5 camera full specs and not being able to buy the 1DX iii- either by price or availability. That’s not mentioning the corona virus financial crisis.

  5. Ehershell West Avatar
    Ehershell West

    And?

  6. Tom Connor Avatar
    Tom Connor

    In the past few years Canon’s prices have gone sky high but their quality is much lower than it used to be.