The cancellation of medical trade shows due to COVID-19 had an impact on first-quarter 2020 financial results in Canon's medical imaging business unit, as the division had fewer opportunities to hold business discussions with customers.
For the quarter (end-March 31), Canon Medical Systems posted revenues of $986.6 million, down 3% compared with sales of $1.016 billion in the corresponding quarter of 2019. The division's income before taxes fell 37% to $38 million, compared with $62 million in the first quarter of 2019.
In discussing the results, Canon noted that sales of diagnostic x-ray systems and related components grew in the first quarter. But the cancellation of numerous medical trade shows due to the COVID-19 outbreak starting in February hindered the company's marketing opportunities.
"There were fewer opportunities to hold business discussion with customers owing to the cancellation of academic conferences and trade shows due to COVID-19," Canon said in a statement.
Sales were also hindered by entry restrictions to restrict travel, particularly in the U.S. and Europe. Also, the company saw delays in equipment installation at medical institutions, and sales and marketing activities were limited.
Looking ahead, Canon said that for the entire company, the "second quarter will be worse" than the first quarter. The company said it is unable to predict when the COVID-19 pandemic will fade, making it difficult to provide an outlook on performance.
