In Australia the Company has seen an exit of senior management during the past 12 months while profits from their digital cameras are being eroded due to new competition from Companies like Panasonic and Samsung.

Canon, which makes EOS and IXY brand digital cameras, is also forecasting that their operating profit in 2009 will fall a further 68%. This is the Companies lowest profit forecast in 14 years.

Canon's annual forecast is closely watched as it is the first earnings indicator from a major Japanese exporter for the year ahead. While most Japanese companies close their books on March 31, Canon's business year ends on Dec. 31.
"A substantial recovery in the economy is unlikely in 2009. Our operating environment will be even harder this year than it was last year," Canon Managing Director Masahiro Osawa told a news conference in Japan last night.

Canon's profitability has been hit by sliding consumer demand, steep price falls and the strength of the yen, which makes Japanese products less price-competitive overseas and eats into revenues when converted into the Japanese currency.
According to Reuters Canon, which leads Sony and Nikon Corp in digital cameras and competes with Xerox and Ricoh in copiers and printers, did not give a dividend forecast for 2009, underscoring economic uncertainty.

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