Canon’s second quarter net profit down, sales up; FY22 Outlook elevators; Stock down

(RTTNews) – Shares of Canon Inc. (CAJ) were down more than 1% in Japanese trading after the imaging equipment maker reported weak second-quarter profit on Tuesday, despite higher net sales.

Additionally, the company raised its outlook for fiscal 2022.

For the second quarter, net profit was 59.03 billion Japanese yen or $430.84 million, down 3.5% from 61.15 billion yen a year ago.

Per share, earnings were 56.83 yen or $0.41, compared to 58.46 yen last year.

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

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

Looking ahead, Canon has revised up its guidance for fiscal 2022 to consolidated net sales of 4.08 trillion yen, a 16.1% year-on-year increase; operating profit of 376.0 billion yen, an increase of 33.4% year-on-year; and net profit attributable to Canon of 262.0 billion yen, an increase of 22% year-on-year.

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

Results for the year are expected to significantly outperform last year, reflecting continued strong demand for the products, even amid uncertainty in the global economy, which is tied to prolonged parts shortages and logistical constraints, as well as the Russian-Ukrainian conflict.

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

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

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Sallie R. Loera