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Canon Australia Will Lay Off a Tenth of Its Staff After Profits Fell Almost 90 Percent

canonheadquarters

Financial hard times from the slaughter of the compact camera market aren’t limited to one company. And while we try to stay away from the gloom and doom news when possible, the news that Canon Australia’s profits dropped almost 90 percent in 2013 compared to 2012 made us do a double take.

According to Photo Counter Australia — and confirmed by a Canon Australia spokeswoman — CA profits for 2013 were a meager $4.1 million compared to 2012’s $38.6 million. That drop is forcing the company to do the dreaded “restructuring” dance, which translates into 10% of the CA workforce, about 100 ‘administration and back-office support jobs,’ being outsourced.

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The good news here — if it is , in fact, possible to talk about good news when 100 people are out of a job — is that the majority of the economic decline doesn’t seem to be coming from actual sale of products.

Revenue overall dropped from $722M to $670M, and Sale of Goods accounts for less than a third of the drop at only about $17 million. That number might not seem great, but “Sale of Goods” accounted for $523 million of the revenue, so that drop translates into only about 3%.

Where the more drastic drop comes in is in the category “Other Revenue” and more specifically “Dividend Income,” which Photo Counter Australia speculates might be coming directly from Canon Japan. If that’s the case, some of the revenue stream from the mother ship might be drying up, and it looks like a lot of that revenue is what got Canon Australia over their bottom line and into the black.

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If you want to see it all for yourself, you can check out the itemized breakdown of revenue and profits above. And if you have anything to add to this story or just want to let us know what you think, drop us a line in the comments down below.

(via Canon Rumors)


Image credits: Canon Headquarters via Wikimedia Commons


 
  • Jeff Valledor

    sorry canon i have about 4 DRSL and 13 lenses from you guys but i have the GH4 for that reason i merge to MFT for the affordable 4K which i think 1Dc is great but out of reach and yet to hope that the Canon 5D mark 4 will be badge with 5D mark 4k it has a nice ring to it . fingers cross.!! come on Canon take back what you started in the video industry and give us something to rival my GH4.

  • derek byrne

    I’ll import before buying locally cause I can’t justify having my pants pulled down. I can only dream of USA pricing and rebates offered.

  • Scott Kenny

    Without a doubt this is due to the “Australia Tax”. The cost of gear here is far too much compared to asia, most people I know who shot Canon get their cameras and lenses from international sites because they can save $100s and in turn buy more gear. Be more competitive with your pricing Canon.

  • Keith

    FROM PHOTO COUNTER: I’m no accountant, but I wouldn’t place a lot of credibility in the low profit figure. Country subsidiaries have an interest in reducing profit and thus the tax they pay in that country. And these figures aren’t usually published, so the low profit figure usually carries no bad publicity, unless someone takes the trouble and pays the fee to get a copy lodged with the Australian equivalent of your securities watchdog. Last year Canon made a $38+ million profit and were actually given a tax credit of a further $1 million. Don’t know why or how. (I wish Canon’s accountant was my accountant.) So the ‘fair dinkum’ figures are further up the column. The ‘Other Sales’ figure, which when you delve into the document includes Dividends, seems to be a way of adjusting profit up or down as the exigencies require. But I could be quite wrong – it’s happened before!

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  • Ivan Chantler

    Why have finance and distribution costs increased so much, that is a critical part of the story.