Canon 2010 Annual Report Download - page 63
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Please find page 63 of the 2010 Canon annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.CANON ANNUAL REPORT 2010 61
due to strong sales of PCs and smart phones, as well as the so-
called “green” products such as LED and power devices.
As a result, shipments of semiconductor lithography equip-
ment in fi scal 2010 recovered sharply over fi scal 2009. By mar-
ket, sales in Korea have been strong, thanks to increased
investment by major memory manufacturers, while in Japan
demand has been steadily improving for lithography equipment
for sensors and image devices.
The market for LCD lithography equipment in fi scal 2010
grew dramatically from the previous year. Makers of LCD panels
have signifi cantly increased their equipment investment in
order to capture growing demand in developing countries. Total
equipment investment among the top LCD panel makers grew
strongly in fi scal 2010 from the previous year, topping the level
recorded during the boom market of fi scal 2008.
Against this background, shipments of LCD lithography
equipment markedly improved rapidly compared to fi scal 2009.
By region, shipments in Japan declined, but those to Korea,
Taiwan and China improved signifi cantly. Shipments of genera-
tion-7.5 and 8 LCD lithography equipment for televisions
improved noticeably.
The medical equipment market in Europe and the United
States was adversely infl uenced by the economic downturn.
However, the market for static digital X-ray equipment has been
expanding, although competition has become more severe
through the entry of computed radiography manufacturers into
the market. The medical equipment market in Asia (mainly
China) is expanding rapidly, and the static digital X-ray equip-
ment market has followed this trend.
Thin and lightweight CXDI-55C/55G portable digital radiogra-
phy system, which was released in 2009, contributed to an
increase of sales in Europe, the United States and Japan. In
2010, Canon’s overall sales increased steadily compared to the
previous fi scal year. We also focused on emerging markets and
particularly, we set the low-end market in China, which is sup-
ported by the Chinese government, as a main target. As a
result, we have been successful in increasing sales to China,
and orders from Central and South America have also contrib-
uted to our U.S. sales fi gures. During 2010, Canon released
dynamic digital radiography CXDI-50RF in Europe and the
United States, and Virtual Imaging, which Canon acquired in
2009, contributed to our increase in sales with its DR system.
A strategic new product, the CXDI-70C Wireless, was launched
in November 2010.
The ophthalmic products market shrank in 2010, especially in
Europe and the United States, due to the economic downturn.
However, the optical coherence tomography (“OCT”) market
expanded steadily compared to 2009. Therefore, many of
Canon’s competitors released new strategic OCT products. In
order to keep pace with these trends, Canon is striving to
increase sales by expanding competitive lineup of products to
gain the market acceptance.
Canon acquired Optopol Technology in 2010 and plans to use
Optopol Technology as a development and production center.
In 2010, sales of Optopol’s OCT technology in Japan, Europe
and the United States contributed to our net sales. Sales of
hybrid retinal cameras, fi rst released in 2009, contributed to
sales in 2010, while sales of non-mydriatic retinal cameras
declined slightly due to the economic downturn in Japan,
Europe and the United States. Canon released the extremely
compact non-mydriatic retinal camera CR2 in November 2010
and aims to increase sales in this market.
Among the “imageFORMULA series” document scanners
handled by Canon Electronics Inc., the high-durability, high-
speed “DR-9050C/6050C,” compact “DR-2010C/2510C” and new
“ScanFront 300P,” with network functionality, all met with strong
market receptions, chalking up increases in units sold and reve-
nues in every region where they are marketed. Sales have been
particularly strong in China, India, and other parts of Asia, with
signifi cant increases in terms of both units and revenues.
Meanwhile, in the Japanese market, strong sales of the
extremely compact and portable document scanner “DR-150”
have led a major increase in unit sales.
Sales of the FA system-related devices handled by Canon
Machinery Inc. ended the term with a year-on-year increase as
solid fi rst-half results outweighed sales declines in the second
half. Die bonders had promising orders for the LED (light-emit-
ting diode) compatible “BESTEM-D01 series,” helped in particu-
lar by vigorous fi rst-half capital investments by LED
manufacturers. It enjoyed signifi cantly higher sales for the term,
despite lower orders in the second half.
The magnetic disk manufacturing equipment handled by
Canon ANELVA Corporation saw sales revenues more than
double from the previous term as demand for hard disk drives
to be used in servers and personal computers rose and cus-
tomers increased capital investments. Sales of magnetic head
manufacturing equipment and semiconductor fi lm deposition
equipment also rose signifi cantly.
Forward looking statements
The foregoing discussion and other disclosure in this report
contains forward-looking statements that refl ect management’s
current views with respect to certain future events and fi nan-
cial performance. Actual results may differ materially from
those projected or implied in the forward-looking statements.
Further, certain forward-looking statements are based upon
assumptions of future events that may not prove to be accu-
rate. The following important factors could cause actual results
to differ materially from those projected or implied in any for-
ward-looking statements: foreign currency exchange rate fl uc-
tuations; the uncertainty of Canon’s ability to implement its
plans to localize production and other measures to reduce the
impact of foreign currency exchange rate fl uctuations; uncer-
tainty as to economic conditions in Canon’s major markets;
uncertainty of continued demand for Canon’s high-value-added
products; uncertainty as to the recovery of computer and relat-
ed markets; uncertainty of recovery in demand for Canon’s
semiconductor lithography equipment; Canon’s ability to con-
tinue to develop products and to market products that incorpo-
rate new technology on a timely basis, are competitively priced,
and achieve market acceptance; the possibility of losses result-
ing from foreign currency transactions designed to reduce
fi nancial risks from changes in foreign currency exchange rates;
and inventory risk due to shifts in market demand.