Canon Profits Plummet 20 Percent, Lays Blame on Earthquake, Not Printer Sales

Paul Lilly

Printer and digital camera maker Canon today posted consolidated results for the second quarter and first half ended June 30, 2011, and blamed the March 11 earthquake and tsunami for its drop in profits. Net profits sank nearly 20 percent year-over-year, while operating profit for the quarter dropped 31 percent from one year ago. Canon reported numbers down almost across the board, including 14 percent less revenue than the same quarter in 2010.

"Looking back at the global economy in the second quarter of 2011, the United States saw a temporary slowdown due to supply chain disruptions triggered by the earthquake that struck northeastern Japan coupled with surges in fuel and food prices, while in Europe, trends continued to vary by country," Canon said (PDF) .

Canon referenced the earthquake a total of ten times in its financial report, while remaining optimistic overall about its future outlook, including printer sales. The company noted that "the laser printer market continued to display solid growth boosted by emerging markets," though the overall demand for inkjet printers remained roughly the same as last year recording "only a slight increase as a result of price competition among market players."

Image Credit: Canon

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