Canon Raises 2024 Outlook: Lithography Sales Up 30%

On July 25, Canon, a leading manufacturer of cameras, lithography machines, and printing equipment, announced its financial results for the second quarter of 2024 (April to June). The company reported record-high revenue and significant year-on-year profit growth. Canon also raised its full-year 2024 performance forecast, surpassing market expectations and driving a surge in its stock price on July 26.

Canon's consolidated revenue for Q2 2024 increased by 14.4% year-on-year to 1,167.8 billion yen, setting a new high for this period. This growth was driven by increased sales of semiconductor lithography equipment and laser printers, coupled with the favorable impact of a weaker yen. Consolidated operating profit rose by 28.3% year-on-year to 118.4 billion yen, while consolidated net profit surged by 37.4% year-on-year to 89.9 billion yen.

In the Imaging Business Unit, which focuses on digital cameras, revenue reached 244.7 billion yen, an 11.6% increase year-on-year. Operating profit for this segment increased by 19.0% to 41.0 billion yen. The Industrial Machinery Business Unit, which includes semiconductor lithography equipment, FPD lithography equipment, and OLED deposition equipment, saw revenue jump by 26.2% to 94.5 billion yen, with operating profit soaring by 48.2% to 17.9 billion yen.

Canon's digital camera sales volume for the second quarter declined by 3% year-on-year to 760,000 units. However, sales of semiconductor lithography equipment rose by 43% year-on-year to 60 units.

According to the Semiconductor Equipment Association of Japan (SEAJ), sales of Japanese semiconductor manufacturing equipment (including exports) in June 2024 reached 343.99 billion yen (three-month moving average), a 31.8% increase year-on-year. This marks the sixth consecutive month of growth and the largest increase since September 2022.

Canon attributed its strong performance to the recovery in laser printer and DSLR camera sales, the robust investment in generative AI, and the continued growth in semiconductor lithography equipment, all boosted by the yen's depreciation. Consequently, Canon revised its consolidated revenue target for the fiscal year 2024 (January to December) from 4.35 trillion yen to 4.6 trillion yen, representing a 10.0% year-on-year increase. This new target surpasses the previous record of 4.48 trillion yen set in 2007. The company also raised its consolidated operating profit forecast from 435.0 billion yen to 465.0 billion yen, a 23.9% increase year-on-year, and its consolidated net profit target from 305.0 billion yen to 335.0 billion yen, a 26.6% increase year-on-year.

For 2024, Canon expects to sell 244 units of semiconductor lithography equipment, a 30% increase from 187 units in 2023. The company also projects global digital camera sales to reach 2.9 million units, a 1% increase from 2.88 million units in the previous year.