# Canon posts 1Q14 Financial Results



## neuroanatomist (Apr 24, 2014)

The highlights from the 1st quarter of 2014:


Unit sales of interchangeable lens cameras (ILC) dropped 7% y/y
Unit sales of compact digital cameras dropped 30% y/y
Revenue from total camera sales dropped 6.7% y/y
For Canon, Inc. overall, 1Q14 sales are +6%, gross profit is +12% and net income is +16%, due to solid performance in office and industrial segments

Projections for FY2014 are -1% / -20% for ILC / compact sales, respectively, and an 8.2% drop in revenue from camera sales.

Full details here: http://www.canon.com/ir/conference/pdf/conf2014q1e.pdf


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## neuroanatomist (May 13, 2014)

Nikon recently posted their FY2014 financials as well (due to the fiscal year offset, Nikon's 4Q is closest to Canon's 1Q).

The highlights from Nikon's report:


Unit sales of interchangeable lens cameras (ILC) + lenses (combined since Nikon reports them separately) dropped 12% y/y
Unit sales of compact digital cameras dropped 40% y/y
Net sales dropped 9% y/y
For Nikon, Inc. overall, 3Q14 sales are –3%%, although operating income rose due to cuts in procurement and advertising costs (maybe they fired Ashton Kutcher? )

Projections for FY2015 are -6% / -19% for ILC / compact sales, respectively.

Full details are here: http://www.nikon.com/about/ir/ir_library/result/pdf/2014/14_all_e.pdf

So…Canon didn't fare too well in the first part of this calendar year and expects to do a bit worse for the rest of the calendar year, and Nikon fared even less well and expects to do even more worse for the rest of the calendar year.

Tough times...


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## unfocused (May 14, 2014)

Thanks Neuro. I love seeing these reports. 

Wish there were more details about this: _Optimization of product mix in entry class SLR cameras and thorough cost reduction activities contributed to the recovery of operating income ratio from 5.1% in the 2nd half of FY3/2013 to 8.8% in the 1st half and 10.0% in the 2nd half, averaging the annual 9.4% rate. _

No mention of Mirrorless.


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## neuroanatomist (May 14, 2014)

unfocused said:


> Wish there were more details about this: _Optimization of product mix in entry class SLR cameras and thorough cost reduction activities contributed to the recovery of operating income ratio from 5.1% in the 2nd half of FY3/2013 to 8.8% in the 1st half and 10.0% in the 2nd half, averaging the annual 9.4% rate. _



If only Google Translate's autodetect language had Business Speak as an option. 

I'd interpret the above as, 'We produced more of the older models that are cheaper and sell better, and sourced materials and subcomponents more cheaply, and laid off a bunch of employees, and that contributed to the recovery of operating income ratio...'


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## sagittariansrock (May 14, 2014)

Thanks for the information, Neuro.



unfocused said:


> Thanks Neuro. I love seeing these reports.
> 
> Wish there were more details about this: _Optimization of product mix in entry class SLR cameras and thorough cost reduction activities contributed to the recovery of operating income ratio from 5.1% in the 2nd half of FY3/2013 to 8.8% in the 1st half and 10.0% in the 2nd half, averaging the annual 9.4% rate. _
> 
> No mention of Mirrorless.



I think decrease in sales but rise in profits means they were able to sell more of the items with larger profit margins. Which cameras have more profit margins? I guess entry level ILCs, from Canon's slides.

One thing caught my attention "Expand sales through launches of new products" (Canon, FY'2014)
Me likey... 


Anyone else think the Nikon slides were horrible?


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