Japanese industrial conglomerate Canon reported that a recovery in demand for diagnostic imaging equipment in the U.S. and Europe helped drive higher sales in its Canon Medical Systems division in the second quarter, even as lockdowns and supply-chain issues occurred.
For the quarter (end-June 30), Canon's medical division posted revenues of $879 million, up 15.9% compared with sales of $831 million in the corresponding quarter of 2021. For the first half of the year, the company's sales of $1.758 billion were up just 0.1% compared with the first half of 2021.
Income before income taxes for the medical business in the second quarter was $63.9 million, up 124.7% on a year-over-year basis due to increased service revenue from CT scanners that "sold well" in fiscal 2021. Pretax income year to date stood at $111.5 million, down 3.4%.
In analyzing the medical results, Canon said that demand for medical equipment is approaching pre-COVID levels in Japan and has largely recovered in the U.S. and Europe. Sales have increased for eight consecutive quarters in the U.S.
There were delays in equipment installations in China due to lockdown restrictions in that country. The company said it dealt with supply-chain disruptions of key components like semiconductor chips switching to alternative parts and by developing business with new component suppliers.