Canon 2008 Annual Report Download - page 52

50
Sales o
f
business machines
,
constitutin
g
65.0% o
f
consolidated
net sales, decreased by 9.4% to ¥2,660,019 million (U.S.$29,231
million
)
in fi scal 2008
.
In the business machines se
g
ment, as demand
f
or network
di
g
ital MFDs shi
f
ted toward color models
f
or the o
ffi
ce ima
g
in
g
products cate
g
or
y
, the appreciation of the
y
en alon
g
with
restrained investment in offi ce e
q
ui
p
ment due to concern over
business per
f
ormance led to
fl
agging sales in major regions.
Consequentl
y
, sales
f
or the cate
g
or
y
declined b
y
13.3% to
¥1,119,523 million (U.S.
$
12,302 million) in fi scal 2008. Color
offi ce imaging products accounted for 37% in fi scal 2008 and
35% in fi scal 2007 of offi ce imaging products sales while
monochrome o
ffi
ce ima
g
in
g
products accounted
f
or 41% and
45% in
fi
scal 2008 and 2007, respectivel
y
. Sales o
f
f
acsimiles
and information s
y
stem business accounted for the residual
22% and 20% of offi ce imaging products sales in fi scal 2008
and 2007, respectively.
Sales o
f
computer peripherals decreased b
y
5.4% in
fi
scal
2008 to ¥1,454,768 million (U.S.
$
15,986 million). Laser beam
printers sales suffered the signifi cant impact of the strong yen
along with reduced demand, resulting in a decrease in sales
volume
f
or monochrome models and sli
g
ht increase
f
or color
models. As
f
or ink
j
et printers, while sales volume
f
or sin
g
le
-
function models continued to drop, efforts focusin
g
on expanded
sa
l
es
o
f m
u
l
t
if
u
n
ct
i
o
n
bus
in
ess
-
use
m
ode
l
s
r
esu
l
ted
in
a
n
o
v
e
r
a
ll
increase in sales volume
.
Sales o
f
business in
f
ormation products decreased b
y
20.1%,
to ¥85,728 million (U.S.
$
942 million) in fi scal 2008 due to reduced
p
ersona
l
com
p
uter sa
l
es in t
h
e Ja
p
anese
d
omestic mar
k
et. Wit
h
regard to servers and personal computers, the decline in sales was
caused b
y
Canon’s chan
g
e in marketin
g
strate
gy
f
rom sellin
g
sin
g
le products to a solutions business involvin
g
combinations
of various
p
roducts
.
Sales o
f
camera
s
declined by 9.6% in
fi
scal 2008, totaling
¥1,041,947 million (U.S.
$
11,450 million). The hi
g
h-resolution,
competitivel
y
priced EOS Di
g
ital Rebel XSi (EOS 450D) and
a
d
vance
d
-amateur mo
d
e
l
EOS 40D enjoye
d
h
ea
l
t
h
y sa
l
es,
contributing to growth in sales volume for digital SLR cameras.
Sales volume also increased
f
or compact di
g
ital cameras despite
sta
g
nant market conditions as the compan
y
bolstered its product
lineup with the introduction of 16 new models, includin
g
6 new
ELPH (IXUS)-series models and 10 PowerShot-series models.
Consequently, unit sales of digital cameras increased by 4% year
on year. Sales of cameras constituted 25.4% of consolidated net
sales in
fi
scal 2008
.
Sales of o
p
tical and other
p
roduct
s
d
ecrease
d
by
0.2% in
fi scal 2008, to ¥392,195 million
(
U.S.$4,310 million
)
. Within this
segment, while sales o
f
aligners, used to produce LCD panels,
g
ained momentum owin
g
to a recover
y
in demand, sales o
f
ste
pp
ers, used in the
p
roduction o
f
semiconductors, remained
stagnant due to deteriorating market conditions. Sales of optical
and other
p
roducts constituted 9.6% of consolidated net sales
in
fi
scal 2008
.
S
a
l
es
b
y region
A geographical analysis indicates that net sales in fi scal 2008
decreased in each of the major regions
.
In Japan, sales o
f
o
ffi
ce ima
g
in
g
products within the business
machines se
g
ment dropped b
y
3.5% in
fi
scal 2008 mainl
y
due
to weakened sales of monochrome models of network digital
MFDs. Although sales of video camcorders recorded solid growth,
overall sales o
f
the cameras se
g
ment decreased b
y
8.7% led b
y
reduced demand
f
or compact di
g
ital cameras. Sales o
f
optical
an
d
ot
h
er pro
d
ucts
d
ecrease
d
by
22.8% main
ly
d
ue to a re
d
uce
d
demand for steppers. As a result, net sales in the region
decreased by 8.4% in
fi
scal 2008
f
rom
fi
scal 2007
.
In the Americas, net sales decreased b
y
1.6% on a local
currenc
y
basis in
fi
scal 2008, mainl
y
due to reduced sales o
f
suc
h
p
ro
d
ucts as monoc
h
rome networ
k
MFDs an
d
com
p
act
digital cameras. On a yen basis, net sales in the Americas declined
b
y
13.6% in
fi
scal 2008 as the
y
en stren
g
thened to the U.S.
dollar rapidl
y
and si
g
ni
fi
cantl
y.
In Europe, net sales fell b
y
3.4% on a local currenc
y
basis in
fi scal 2008, mainly due to reduced sales of such products as
compact digital cameras and laser beam printers. On a yen
basis, net sales in Europe dropped b
y
10.5% in
fi
scal 2008
resultin
g
f
rom the impact o
f
the rapid appreciation o
f
the
y
en
to
the
eu
r
o.
Sales in other areas increased by 4.5% on a yen basis in
fi
scal 2008, re
fl
ectin
g
the robust rise in sales o
f
di
g
ital cameras
and ali
g
ners
.
A summar
y
of net sales b
y
re
g
ion is provided below
:
S
ALE
S
BY RE
G
I
ON
M
illions o
f
ye
n
Thousands o
f
U.S.
d
o
ll
ar
s
2008
c
han
ge
2007
c
han
ge
2006
2008
J
a
p
an ¥ 868,280 –8.4%
¥
9
47
,
5
8
7 +1.6
%
¥
932,290
$ 9,541,538
Am
e
r
icas
1,154,571 –13.6 1,
336
,1
68
+4.1
1,
283
,
6
4
6
12,687,593
E
urope 1,341,400 –10.5 1
,
499
,
28
6
+14.1 1
,
314
,
30
5
14,740,659
Ot
h
e
r
a
r
eas
729,910 +4.5
698,305
+
11
.
5
626,
51
8
8,020,990
Total
¥4,094,161 –8.6% ¥4,4
8
1,
3
4
6
+7.8
%
¥4,15
6
,75
9
$44,990,780
Note: This summary of net sales by region of destination is determined by the location of the customer
.