Financial Highlights

Results for 3Q 2019 (from January 1 to September 30, 2019)

Looking back on the Japanese economy during the first nine months of the fiscal year under review, although business sentiment centering on the manufacturing industry continued to worsen, mainly due to the impact of trade friction issues, corporate capital investment continued to expand, led by investment in IT.
Meanwhile, consumer sentiment remained weak, given ongoing uncertainty over the future, despite the last-minute surge in demand before the consumption tax hike. In this economic environment, IT Solutions grew for small and medium enterprises as well as for large companies, although net sales of digital SLR cameras and industrial equipment decreased. As a result, net sales grew to 463.029 billion yen (up 3.4% year on year).
On the profit side, thanks to an increase in gross profit resulting from net sales growth in IT Solutions, cost cutting, and an increase in sales of some high-profit products due to last-minute shopping before the consumption tax hike, operating income came to 23.889 billion yen (up 50.2% year on year), ordinary income was 24.914 billion yen (up 44.0% year on year), and profit attributable to owners of parent was 16.506 billion yen (up 42.9% year on year).

Full-year forecasts for the fiscal year ending December 31, 2019

Looking ahead to the fiscal year ending December 31, 2019, the Japanese economy is expected to remain on a moderate recovery path, although there are some weak areas. However, the situation will remain uncertain, given the effects on the domestic economy of trade issues and economic uncertainties overseas, among other factors, in addition to the anticipated consumption tax hike.

Full-year earnings forecasts have been reviewed recently based on the progress during the first nine months of the fiscal year under review and the forecasts for the last three months of the fiscal year under review. As a result, the consolidated earnings forecasts announced on July 23, 2019, have been revised, taking into consideration a range of factors including earnings forecasts for IT Solutions, a business promoted proactively by the Canon Marketing Japan Group, that are expected to surpass the initial projection. Details are as follows.