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Canon released its financials for the second quarter of 2024, and everything is up and looking good for Canon. Sales are up, profit is up, and net operating profit is up. Everything that would make a CEO smile is looking good for Canon this last quarter.
- In markets in which we compete, demand remained weak in certain regions due to slowdown in global economic growth
- Recovery in camera, network camera, and laser printer sales as inventory adjustments were completed as planned
- Steady growth in semiconductor lithography equipment, commercial printing equipment, and medical business sales where medium- to long-term market growth is expected
- Achieved 14% increase in sales compared to the same period last year and record high sales for second quarter
- Nearly 30% increase in operating profit, profitability raised to 10.1%
It's really hard to argue with those overarching stats from the quarter summary. Canon is most certainly not Doomed.
For imaging and cameras in general, the news is as good as Canon shadows a 9.3% increase from Q2 2023, and is projecting an 11% increase for the entire fiscal 2024. In terms of cameras by units, Canon sold 760,000 units this quarter – and is estimating 2.9 million for the entire year. That's about the only negative is that year on year, that's 3% less than 2Q 2023. However, Canon announced no new cameras in that period of time this year, which could easily account for the difference.
I should also note that Canon hasn't hidden their camera profits and units sold and they still leave that open for investors and for us to review. Some other companies have decided that is unimportant, or they are ashamed of their performance – take your pick on the reason.
Canon stated this about their imaging performance, and I think this is notable. We have been hearing from camera retailers that Canon has a backlog of inventory to deal with. It seems they have made progress in this regard.
Regarding Imaging, as the adjustment of both camera and network camera market inventory, which had a negative impact on the performance of this business unit in the first quarter was completed, second quarter sales exceeded the level of last year and profitability recovered to a level slightly below 17%.
Canon is very bullish on the imaging department and its substantial market dominance in both overall camera market share and now, mirrorless as Canon is the undisputed leader in both categories.
As for Imaging, starting with cameras, in the second half of the year, we will launch two new mirrorless models, the EOS R1, our flagship mirrorless model, and the EOS R5 Mark II, a new mainstream model for professionals and advanced amateurs, and aim to secure an overwhelming No. 1 market share position. As for network cameras for which inventory adjustment was also completed, we expect double-digit growth to continue and for the Imaging Group overall, we plan for a 13% increase in sales.
You can review all of the Canon financial data here for the 2nd Quarter of 2024.
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There's an article out there on the wild that is based on this article by DCLife. It should be very well noted that this is for the Japanese market, and while it's an important market, Japan is a little odd right now in terms of camera sales and certainly isn't indicative by any stretch of the imagination of how the entire global market is. Japan's sales will rebound massively this quarter with the R5 Mark II and the R1.
They ignore the recovery and are talking about the crash 2 quarters ago.
The would have been right to raise the alarm 2 quarters ago when Canon decided to lay so many people off to get back on track.
The printer division still looks like a disaster though.
And it ain't finished yet, new cameras and lenses are coming.
I agree with @Del Paso that @neuroanatomist has insulted a lot of bowling balls 😀 .
I got out of bed and dragged my arse to the computer to read that. It sounds like that's just Canon Japan's numbers?
I have to read it a little more.
yeah, it has to be the overall net sales are only 161 billion yen, versus Canon Global being 1167 billion yen.
photorumors is usually much better than that.
I think I remember reading, years ago, that many major-brand laser printers were not manufactured by the company that slapped their own label on it.
Maybe the blogger got hit in the head with a bowling ball. I feel bad for the bowling ball.
I always thought photorumors is usually better than that, but his sites aren't on my normal quick scan list every day.
I do have to write up about the R3 apparently. I just saw that in petapixel. I'll do that in 5 hours when I wake up for real though and have coffee, I need to think about that a bit more anyways.
There is no doubt that the heavily discounted global pricing for bodies (and some lenses) reduced the inventory and was still profitable.
The R5/R3 discounted price may influence potential new R5ii/R1 sales in their bang per buck "value proposition" (see... I can do corporate speak!).
Lots of chatter that users are happy with their R5 (including me) vs upgraders even if there are massive improvements in virtually all areas of the new camera. 5Div replacement may go to R5 sales instead of R5ii simply due to the lack of need for better features vs R5 and lower cost of entry to quality mirrorless.
I truly hope that the discounted R5 stays in the line up replacing the R so that my insurance premium stays lower. I don't need to price in a replacement R5ii in that case.
he could have easily put "Domestic" in the title if he wanted to. I see him try and explain his post, etc. in the comment section. a title change would have saved all that if he was really that concerned.
Anyways, I added a section in this article talking about the original dclife report. it's probably not necessary but we do have "those kind of people" in the forums these days.
I lived 10 minutes from the Service Center in NJ, and that, and teh fact that I bought my first Canon 30+ years ago kept me with teh brand ---- It's LOYALTY.
Then the Service Center relocated, then they cut here and there, then they said no 3rd party lenses even though we don't make what still photographers would like us to make. And when we do make a lens, we can't keep up with the demand and it's always out of stock. As a loyal customer, I do feel jerked around A LOT.
But that's teh thing with companies....When you work for one, there is a lot of internal savings, and saying targets are not met, blah blah blah. On the outside the financials alway look good, especially for press releases. It does never really tell the whole story.
So, Canon....what about letting Sigma and Tamron produce lenses we want that you don't provide. Then I can tell people to buy Canon again.
I am not switching (yet). In too deep. But a good tax return, and some extra spending money.....I would not rule it out, especially if you continue to drag your feet on things "enthusiastic nature amataeur photographers" want. Like a lightweight and small 500 f5.6. What, Nikon and Sigma have those? But not for Canon.....
Pffffftttttt......