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03
PERFORMANCE IN 2011
In fiscal 2011, ended December 31, 2011, the world economy continued
growing, albeit moderately, driven by the expansion of newly emerging
countries. Looking back, however, it was a demanding year due to a succes-
sion of challenging events. In addition to the Great East Japan Earthquake,
these included economic turmoil in Europe, which was triggered by the
Greek debt crisis in May and gave rise to the sharp appreciation of the yen,
as well as massive flooding in Thailand in October. We extend our sincerest
condolences to all those affected by the Japan earthquake and the Thai
floods, and pray for a speedy recovery of the disaster-stricken areas.
Amid these challenging circumstances, Canon posted consolidated net
sales of ¥3,557.4 billion, down 4.0% from the previous fiscal year. On the
profit side, however, we stepped up efforts to reduce costs and worked
exhaustively to improve our expenditure efficiency through the comprehen-
sive promotion of automated production, in-house production and
Dzman-machine celldzproduction, which integrates manual and automated
processes. Accordingly, the Company was able to enhance profitability, real-
izing a 0.7 point increase in the gross profit ratio to 48.8%, and a 0.1 point
improvement in the operating profit ratio to 10.6%. Moreover, net income
attributable to Canon Inc. increased 0.8% to ¥248.6 billion, marking the sec-
ond consecutive year of year-on-year profit growth.
The earthquake in Japan and floods in Thailand had a negative impact on
net sales of approximately ¥230.0 billion, and on operating profit of approxi-
mately ¥120.0 billion. Excluding the effect of these disasters on our
performance, net sales would have increased while operating profit would
have jumped approximately 30.0%Ȅeven despite the yen’s sharp apprecia-
tion and the economic instability. We believe, therefore, that we have
further boosted the market competitiveness of our products and the
Company has made good progress in reducing costs.
Canon continues to adopt a proactive approach to steadily returning
profits to stockholders while taking into consideration future investments,
free cash flow and consolidated business performance. For 2011, Canon has
decided to pay a full-year cash dividend of ¥120.00 per share, the same level
as the previous year.
DzCanon will overcome the difficult business
environment and return to a path of growth.dz
02 13
STRATEGY Business Units Management System Financial SectionSTRATEGY