Contributions from Canon's acquisition of Toshiba Medical Systems helped boost financial results for the company's first quarter (end-March 31), and the company has raised its forecast for 2017.
Canon paid $6 billion for Toshiba Medical in December 2016, and the business has been incorporated into Canon's Industry and Others business unit, which includes the firm's activities in medical imaging such as digital radiography that predated the Toshiba acquisition. Prior to the Canon deal, Toshiba Medical had sales for the year ending March 2016 of $2.495 billion, with operating profit of $70.4 million and net income of $140.3 million.
For Canon, the addition of Toshiba Medical had a big impact on first-quarter revenues in the Industry and Others segment. Sales in the business were 274 billion yen ($2.94 billion U.S.), up 151% compared with sales of 109 billion yen ($980 million) in the first quarter of 2016. The segment's operating profit was 19 billion yen ($170 million) in the most recent period, compared with an operating loss of 622 million yen ($5.6 million) in the same quarter a year ago.
For the full year, Canon projects an increase of 18.2% in year-over-year revenues, growth of 18.0% in operating profit, and an increase of 19.5% in net income, thanks largely to the Toshiba Medical deal.
