FORM 6-K

SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

Report of Foreign Issuer
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934

For the month of ..... July.............................................       , 2008  

CANON INC.

(Translation of registrant’s name into English)

30-2, Shimomaruko 3-Chome, Ohta-ku, Tokyo 146-8501, Japan
(Address of principal executive offices)

    [Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.

Form 20-F           X          Form 40-F                     

    [Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

    Yes                      No           X          

    [If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b):82-                     

SIGNATURES

    Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

		CANON INC.
		(Registrant)
Date.... July        24,     2008....		By....../s/...... Masashiro    Kobayashi.................
	(Signature)*
		Masashiro    Kobayashi
		General Manager
		Global Finance Management Center
		Canon Inc.

*Print the name and title of the signing officer under his signature.

The following materials are included.

1. RESULTS FOR THE SECOND QUARTER AND THE FIRST HALF ENDED JUNE 30, 2008

RESULTS FOR THE SECOND QUARTER
AND THE FIRST HALF ENDED JUNE 30, 2008

July 24, 2008

CONSOLIDATED RESULTS FOR THE FIRST HALF

(Millions of yen, thousands of U.S. dollars, except per share amounts)

		Actual																				Projected
		Six months				Six months				Change(%)				Six months				Year ended				Year ending
		ended				ended								ended				December 31,				December 31,				Change(%)
		June 30, 2008				June 30, 2007								June 30, 2008				2007				2008
		(Unaudited)				(Unaudited)								(Unaudited)
Net sales		¥	2,113,432			¥	2,166,724				-      2.5			$	19,938,038			¥	4,481,346			¥	4,590,000				+    2.4
Operating profit			330,983				388,876				-    14.9				3,122,481				756,673				770,000				+    1.8
Income before income taxes and minority interests			339,245				406,141				-    16.5				3,200,425				768,388				785,000				+    2.2
Net income		¥	214,485			¥	255,183				-    15.9			$	2,023,443			¥	488,332			¥	500,000				+    2.4
Net income per share:
- Basic		¥	170.08			¥	194.38				-    12.5			$	1.60			¥	377.59			¥	396.47				+    5.0
- Diluted			170.07				194.33				-    12.5				1.60				377.53				-				-
		Actual
		As of				As of				Change(%)				As of				As of
		June 30, 2008				June 30, 2007								June 30, 2008				December 31, 2007
		(Unaudited)				(Unaudited)								(Unaudited)
Total assets		¥	4,458,196			¥	4,608,514				-    3.3			$	42,058,453			¥	4,512,625
Stockholders’ equity		¥	3,007,929			¥	3,074,367				-    2.2			$	28,376,689			¥	2,922,336

Notes:		1. Canon’s consolidated financial statements are prepared in accordance with U.S. generally accepted accounting principles. 2. U.S. dollar amounts are translated from yen at the rate of JPY106= U.S.$1, the approximate exchange rate on the Tokyo Foreign     Exchange Market as of June 30, 2008, solely for the convenience of the reader.

NON-CONSOLIDATED RESULTS FOR THE FIRST HALF

(Millions of yen, thousands of U.S. dollars, except per share amounts)

		Actual
		Six months				Six months				Change(%)				Six months				Year ended
		ended				ended								ended				December 31,
		June 30, 2008				June 30, 2007								June 30, 2008				2007
		(Unaudited)				(Unaudited)								(Unaudited)
Net sales		¥	1,395,347			¥	1,370,988				+      1.8			$	13,163,651			¥	2,887,912
Operating profit			235,890				280,363				-    15.9				2,225,377				533,841
Ordinary profit			256,211				302,276				-    15.2				2,417,085				552,843
Net income		¥	168,439			¥	200,925				-    16.2			$	1,589,047			¥	366,973
Net income per share		¥	133.57			¥	153.05				-    12.7			$	1.26			¥	283.75
Dividend per share			55.00				50.00				+    10.0				0.52				110.00
		Actual
		As of				As of				Change(%)				As of				As of
		June 30, 2008				June 30, 2007								June 30, 2008				December 31, 2007
		(Unaudited)				(Unaudited)								(Unaudited)
Total assets		¥	2,836,060			¥	2,808,645				+    1.0			$	26,755,283			¥	2,790,892
Net assets		¥	1,981,996			¥	2,042,600				-    3.0			$	18,698,075			¥	1,890,566

Note:		U.S. dollar amounts are translated from yen at the rate of JPY106 = U.S.$1, the approximate exchange rate on the Tokyo Foreign Exchange Market as of June 30, 2008, solely for the convenience of the reader.

Canon Inc.		30-2, Shimomaruko 3-chome, Ohta-ku,
Headquarter office		Tokyo 146-8501, Japan
		Phone: +81-3-3758-2111

I. Operating Results and Financial Conditions

2008 First Half in Review

Looking back at the global economy in the first half of 2008, in the United States, housing investment remained lackluster during the period due to the subprime loan crisis while escalating crude oil prices led to slack consumer spending. In Europe, growth of consumer spending was sluggish due to a rise in prices, and exports suffered a slowdown due to the appreciation of the euro. Within Asia, although the effects of the U.S. and European economies resulted in a slight slowdown, the Asian economy, led by China, continued to realize a high rate of growth. In Japan, consumer spending floundered amid uncertainty over the future while export growth was limited due to the slowdown in the global economy and the appreciation of the yen.

As for the markets in which Canon operates, within the office imaging product market, amid the shift toward color models and advanced functionality, demand for network digital multifunction devices (MFDs) remained low primarily in the U.S. market due to the deterioration of the business climate. As for computer peripherals, including printers, demand for laser beam printers continued to display growth, mainly for color models. With regard to inkjet printers, demand continued to shift from single-function to multifunction models amid fierce price competition within the market. Within the digital camera segment, demand for digital single-lens reflex (SLR) cameras and digital compact cameras grew steadily during the term. In the optical equipment segment, while demand for steppers, utilized in the production of semiconductors, remained low due to restrained facility investment by device manufacturers, the market for aligners, used to produce liquid crystal display (LCD) panels, improved dramatically thanks to a recovery in capital spending by LCD panel manufacturers. The average value of the yen for the first half was ¥104.69 to the U.S. dollar, a year-on-year appreciation of about 13%, and ¥160.69 to the euro, approximately the same level as the year-ago period.

Amid these conditions, Canon has been working steadily to strengthen the company’s management foundation by bolstering competitiveness in each business field through management innovations. During the first six months of the year, sales volumes of digital cameras, color network MFDs and other products increased supported by the enhancement of market share and recording sales increases on a local-currency basis. The negative effect, however, of the sharp and sudden appreciation of the yen against the U.S. dollar resulted in consolidated net sales for the first half of ¥2,113.4 billion (U.S.$19,938 million), a year-on-year decrease of 2.5%. Despite the continued launch of new products and ongoing cost-cutting efforts, the gross profit ratio for the first half was 49.3%, a decline of 1.8 points due to such factors as the rapid appreciation of the yen against the U.S. dollar and escalating resource and materials costs. As such, first-half gross profit declined by 6.0% to ¥1,041.5 billion (U.S.$9,825 million) from the year-ago period. While R&D expenditures grew by 3.1% compared with the same period for the previous year, group-wide expense-reduction efforts supported a decrease in operating expenses of 1.1% year on year. Consequently, operating profit in the first half totaled ¥331.0 billion (U.S.$3,122 million), a decline of 14.9% compared with last year. Other income (deductions) decreased by ¥9.0 billion (U.S.$85 million), mainly due to a reduced interest income and a drop in earnings on investments in affiliates accounted for by the equity method. As a result, while income before income taxes and minority interests for the first half totaled ¥339.2 billion (U.S.$3,200 million), a decline of 16.5%, and first-half net income also recorded a decrease of 15.9% to ¥214.5 billion (U.S.$2,023 million), the net income ratio, at 10.1%, remained at a double-digit level.

Basic net income per share for the first half was ¥170.08 (U.S.$1.60), a year-on-year decline of ¥24.30 (U.S.$0.23).

Results by Product Segment

Reviewing first-half consolidated results by business sector, within the business machine segment, despite sales growth for such products as the competitively priced iR C3580 series of color network digital MFDs, the appreciation of the yen along with restrained investment in office equipment as a result of concerns regarding business performance had a negative impact on sales led by the U.S. market. Consequently, business machine sales overall declined by 5.3% year on year. In the field of computer peripherals, despite a steady increase in sales of laser beam printers on a local-currency basis, the significant impact of the yen’s appreciation against the U.S. dollar resulted in a decrease in sales of 3.9% from the year-ago period. As for inkjet printers, however, home-use multifunction models such as the PIXMA MP610, as well as business-use MFDs equipped with a facsimile function, recorded an increase in unit sales with sales of related consumables also expanding, which contributed to a sales increase of 2.8% despite the impact of the yen’s appreciation. As a result, first-half profit for computer peripherals overall declined by 2.3%. As for business information products, a drop in demand for personal computer sales in the Japanese domestic market resulted in a reduction in sales of 12.6%. Collectively, sales of business machines overall during the term totaled ¥1,389.0 billion (U.S.$13,104 million), dropping 4.0% from the year-ago period. Operating profit for the segment totaled ¥303.0 billion (U.S.$2,859 million), a year-on-year decrease of 9.7%, as a result of lower gross profit ratio due to the appreciation of the yen.

Within the digital camera segment, the high-resolution, competitively priced EOS Digital Rebel XSi and advanced-amateur model EOS 40D contributed to robust sales while also boosting sales of interchangeable lenses and other accessories. Sales volume of digital compact cameras also maintained stable growth, bolstered by the launch of 7 new models, including 4 new stylish ELPH (IXUS)-series models and 3 new PowerShot-series models that cater to a range of photographic demands. As a result, while year-on-year sales volume for digital cameras rose by 16%, overall camera sales for the first half grew by only 1.9% from the year-ago period to ¥529.4 billion (U.S.$4,994 million) due to the dramatic appreciation of the yen against the U.S. dollar along with fierce price competition. Additionally, operating profit for the camera segment decreased by 18.0% year on year to ¥112.6 billion (U.S.$1,062 million) as a result of the significant decline in the gross profit ratio for the sector.

In the optical and other products segment, while sales of aligners, used to produce LCD panels, gained momentum owing to a recovery in demand by LCD panel manufacturers, sales of steppers, used in the production of semiconductors, remained stagnant throughout the period due to market shrinkage. As a result, sales for the segment totaled ¥195.0 billion (U.S.$1,840 million), a year-on-year decrease of 2.8%, while operating profit for the segment fell by 74.2% to ¥5.5 billion (U.S.$52 million).

Cash Flow

In the first half of 2008, Canon generated cash flow from operating activities of ¥335.6 billion (U.S.$3,166 million), a decrease of ¥104.7 billion (U.S.$988 million) compared with the corresponding period for last year, reflecting the decrease in net income. Cash flow from investing activities totaled ¥289.5 billion (U.S.$2,732 million), a year-on-year increase of ¥80.2 billion (U.S.$756 million), due to such factors as aggressive facility investment to reinforce production capabilities and the payment to acquire shares of Hitachi Displays, Ltd. toward the launch of Canon’s display business. As a result, free cash flow totaled ¥46.1 billion (U.S.$435 million), deteriorating by ¥184.9 billion (U.S.$1,744 million).

Cash flow from financing activities recorded an outlay of ¥85.0 billion (U.S.$802 million), mainly resulting from the dividend payout of ¥75.7 billion (U.S.$714 million). Consequently, cash and cash equivalents decreased by ¥78.1 billion (U.S.$736 million) to ¥866.4 billion (U.S.$8,174 million) from the end of the previous year, including the ¥39.2 billion (U.S.$369 million) negative impact of currency translation due to the appreciation of the yen against the U.S. dollar.

Non-consolidated Results

While first-half non-consolidated net sales totaled ¥1,395.3 billion (U.S.$13,164 million), a year-on-year increase of 1.8%, ordinary profit declined by 15.2% to ¥256.2 billion (U.S.$2,417 million) and net income fell by 16.2% to ¥168.4 billion (U.S.$1,589 million) due to the impact of foreign currency exchange rates, which also had a similar impact on the company’s consolidated financial results.

Outlook

As for the outlook for the global economy in the third quarter and thereafter, fallout from the subprime loan crisis, including financial instability and escalating prices of crude oil and raw materials, have led to rising anxiety over an economic slowdown and uncertainty about the future. Amid this environment, while the economic slowdown is likely to continue among developed countries for the time being, these economies are expected to gradually move toward recovery as the effects of financial policies and economic stimulus measures in the U.S. and other countries begin to materialize from the end of the year. As for emerging-market economies, including those of Asia and Russia, despite the negative economic influence of developed countries, these regions are expected to continue enjoying high rates of growth.

In the businesses in which the Canon is involved, the market for digital SLR and digital compact cameras is projected to continue achieving healthy expansion amid intensifying price competition. Demand for color network digital MFDs and color laser beam printers is also expected to remain solid amid continued price competition and shifting market demand toward lower priced models. While the market for steppers will likely remain depressed, the market for aligners is expected to stage a healthy recovery owing to large-scale facility investment by LCD panel manufacturers.

As for currency exchange rates from the third quarter onward, on which Canon’s performance outlook for the full year is based, while uncertainty over future interest rate policies and economic prospects for major countries is likely to continue, Canon anticipates exchange rates of ¥105 to the U.S. dollar and ¥165 to the euro, representing year-on-year appreciation of approximately 9% against the U.S. dollar and depreciation of about 1% against the euro. Upon taking into consideration first-half business results as well as the expected business climate based on these foreign exchange rate assumptions, the company has slightly revised its projected consolidated net sales upwards to ¥4,590.0 billion (U.S.$43,302 million), while maintaining earlier announced projections for operating profit of ¥770.0 billion (U.S.$7,264 million), income before income taxes and minority interests of ¥785.0 billion (U.S.$7,406 million), and net income of ¥500.0 billion (U.S.$4,717 million).

Fiscal year						Millions of yen
		Year ending								Change				Year ended				Change (%)
		December 31, 2008												December 31, 2007
		Previous Outlook (A)				Revised Outlook (B)				(B - A)				Results (C)				(B - C) / C
Net sales		¥	4,570,000			¥	4,590,000			¥	20,000			¥	4,481,346				+    2.4	%
Operating profit			770,000				770,000				-				756,673				+    1.8	%
Income before income taxes and minority interests			785,000				785,000				-				768,388				+    2.2	%
Net income			500,000				500,000				-				488,332				+    2.4	%

Basic Policy Regarding Profit Distribution

Canon is being more proactive in returning profits to shareholders, mainly in the form of a dividend, taking into consideration planned future investments, free cash flow, and the company’s consolidated business performance. Specifically, Canon’s medium- to long-term objective is to continuously strive to raise its consolidated payout ratio to approximately 30%.

The company plans to distribute a full-year dividend for fiscal 2008 totaling ¥110.00 (U.S.$1.04), comprising an interim dividend of ¥55.00 (U.S.$0.52) per share, and a year-end dividend of ¥55.00 (U.S.$0.52) per share.

II. Management Policy

  (1) Basic Policy

Under the corporate philosophy of kyosei—living and working together for the common good—Canon’s basic management policy is to contribute to the prosperity and well-being of the world while endeavoring to become a truly excellent global corporate group targeting continued growth and development.

  (2) Management Goals

Based on this basic management policy, Canon launched two consecutive five-year management plans—Phase I of its Excellent Global Corporation Plan in 1996, and Phase II in 2001— with the aim of becoming a truly excellent global corporation. Through these two management plans, the company promoted a range of management reforms, thoroughly strengthening its product competitiveness and financial base. Since 2006, under a new five-year management plan—Phase III, which targets further growth and improved corporate value—Canon is pursuing “sound growth,” making use of the solid management foundation achieved through the two preceding plans, and further expanding its corporate scale while maintaining a high level of profitability. In particular, the company is focusing on the following five important management objectives.

1)		Achieving the overwhelming No. 1 position worldwide in all current core businesses
2)		Expanding business operations through diversification
3)		Identifying new business domains and accumulating required technologies
4)		Establishing new production systems to sustain international competitiveness
5)		Nurturing truly autonomous and strong individuals promoting everlasting corporate reforms

  (3) Business Challenges and Countermeasures

At Canon, the creation of new businesses and maintaining a high profitability structure represent two very important management objectives to ensure continuous future growth.

     As for new businesses, the company is promoting research based on leading-edge technologies in its areas of expertise, such as biotechnology, nanotechnology and life sciences. At the same time, Canon is also looking into M&A opportunities and business tie-ups toward launching such businesses. Additionally, the company aims to enter the display business, moving away from a focus on still images while strengthening the ability to deliver video images, which will play an increasingly important role in the broadband era.

     With regard to maintaining the company’s current high profitability structure, in order to effectively respond to the intensifying price competition centered on the consumer goods market and the investment burden that accompanies the launch of competitive new businesses, Canon believes that it is important to further improve the profit-earning ability of current businesses. To facilitate this, the company is promoting the development of new products and actively carrying out cost-reduction activities.

     Canon also views its approach to the environment as an important management issue. From the product planning stage through to design, development, production, sales, use, recovery and recycling, the company focuses its energies on such areas as creating environmentally conscious products that realize energy efficiency, resource efficiency, and eliminate the use of hazardous substances. Additionally, Canon actively promotes the development of recycling systems, the expansion of green procurement policies, the disclosure of environmental information, and participation in environmental conservation activities at the community level.

CANON INC. AND SUBSIDIARIES

CONSOLIDATED

III. Financial Statements

1. CONSOLIDATED STATEMENTS OF INCOME

 

Results for the second quarter		Millions of yen												Thousands of
														U.S. dollars
		Three months				Three months								Three months
		ended				ended				Change(%)				ended
		June 30, 2008				June 30, 2007								June 30, 2008
		(Unaudited)				(Unaudited)								(Unaudited)
Net sales		¥	1,105,894			¥	1,126,931			-	1.9			$	10,432,962
Cost of sales			564,304				553,054								5,323,622
Gross profit			541,590				573,877			-	5.6				5,109,340
Operating expenses:
Selling, general and administrative expenses			285,529				295,067								2,693,670
Research and development expenses			95,908				97,337								904,793
			381,437				392,404								3,598,463
Operating profit			160,153				181,473			-	11.7				1,510,877
Other income (deductions):
Interest and dividend income			4,773				9,112								45,028
Interest expense			(251	)			(402	)							(2,368	)
Other, net			7,928				8,114								74,793
			12,450				16,824								117,453
Income before income taxes and minority interests			172,603				198,297			-	13.0				1,628,330
Income taxes			61,304				70,289								578,339
Income before minority interests			111,299				128,008								1,049,991
Minority interests			3,458				4,075								32,623
Net income		¥	107,841			¥	123,933			-	13.0			$	1,017,368
Note: Comprehensive income for the three months ended June 30, 2008 and 2007 was JPY 160,962 million (U.S.$ 1,518,509 thousand) and JPY 172,538 million, respectively.
Results for the first half		Millions of yen												Thousands of				Millions of yen
														U.S. dollars
		Six months				Six months								Six months				Year ended
		ended				ended				Change(%)				ended				December 31,
		June 30, 2008				June 30, 2007								June 30, 2008				2007
		(Unaudited)				(Unaudited)								(Unaudited)
Net sales		¥	2,113,432			¥	2,166,724			-	2.5			$	19,938,038			¥	4,481,346
Cost of sales			1,071,977				1,059,170								10,112,991				2,234,365
Gross profit			1,041,455				1,107,554			-	6.0				9,825,047				2,246,981
Operating expenses:
Selling, general and administrative expenses			535,009				548,411								5,047,255				1,122,047
Research and development expenses			175,463				170,267								1,655,311				368,261
			710,472				718,678								6,702,566				1,490,308
Operating profit			330,983				388,876			-	14.9				3,122,481				756,673
Other income (deductions):
Interest and dividend income			10,966				17,367								103,453				32,819
Interest expense			(663	)			(795	)							(6,255	)			(1,471	)
Other, net			(2,041	)			693								(19,254	)			(19,633	)
			8,262				17,265								77,944				11,715
Income before income taxes and minority interests			339,245				406,141			-	16.5				3,200,425				768,388
Income taxes			117,338				142,836								1,106,963				264,258
Income before minority interests			221,907				263,305								2,093,462				504,130
Minority interests			7,422				8,122								70,019				15,798
Net income		¥	214,485			¥	255,183			-	15.9			$	2,023,443			¥	488,332
Note: Comprehensive income for the six months ended June 30, 2008 and 2007 was JPY 161,371 million (U.S.$ 1,522,368 thousand) and JPY 356,634 million, respectively.

CANON INC. AND SUBSIDIARIES

CONSOLIDATED

2. DETAILS OF SALES

		Millions of yen												Thousands of
Results for the second quarter														U.S. dollars
		Three months				Three months								Three months
Sales by product		ended				ended				Change(%)				ended
		June 30, 2008				June 30, 2007								June 30, 2008
		(Unaudited)				(Unaudited)								(Unaudited)
Business machines:
Office imaging products		¥	311,575			¥	326,866			-	4.7			$	2,939,387
Computer peripherals			363,652				377,590			-	3.7				3,430,679
Business information products			21,981				26,740			-	17.8				207,368
			697,208				731,196			-	4.6				6,577,434
Cameras			310,416				297,131			+	4.5				2,928,453
Optical and other products			98,270				98,604			-	0.3				927,075
Total		¥	1,105,894			¥	1,126,931			-	1.9			$	10,432,962
		Millions of yen												Thousands of
														U.S. dollars
		Three months				Three months								Three months
Sales by region		ended				ended				Change(%)				ended
		June 30, 2008				June 30, 2007								June 30, 2008
		(Unaudited)				(Unaudited)								(Unaudited)
Japan		¥	218,818			¥	225,843			-	3.1			$	2,064,321
Overseas:
Americas			314,785				335,325			-	6.1				2,969,670
Europe			379,508				384,588			-	1.3				3,580,264
Other areas			192,783				181,175			+	6.4				1,818,707
			887,076				901,088			-	1.6				8,368,641
Total		¥	1,105,894			¥	1,126,931			-	1.9			$	10,432,962
		Millions of yen												Thousands of				Millions of yen
Results for the first half														U.S. dollars
		Six months				Six months								Six months				Year ended
Sales by product		ended				ended				Change(%)				ended				December 31,
		June 30, 2008				June 30, 2007								June 30, 2008				2007
		(Unaudited)				(Unaudited)								(Unaudited)
Business machines:
Office imaging products		¥	599,099			¥	632,428			-	5.3			$	5,651,877			¥	1,290,788
Computer peripherals			743,161				760,687			-	2.3				7,010,953				1,537,511
Business information products			46,734				53,472			-	12.6				440,887				107,243
			1,388,994				1,446,587			-	4.0				13,103,717				2,935,542
Cameras			529,411				519,574			+	1.9				4,994,443				1,152,663
Optical and other products			195,027				200,563			-	2.8				1,839,878				393,141
Total		¥	2,113,432			¥	2,166,724			-	2.5			$	19,938,038			¥	4,481,346
		Millions of yen												Thousands of				Millions of yen
														U.S. dollars
		Six months				Six months								Six months				Year ended
Sales by region		ended				ended				Change(%)				ended				December 31,
		June 30, 2008				June 30, 2007								June 30, 2008				2007
		(Unaudited)				(Unaudited)								(Unaudited)
Japan		¥	446,599			¥	458,302			-	2.6			$	4,213,198			¥	947,587
Overseas:
Americas			585,449				641,949			-	8.8				5,523,104				1,336,168
Europe			716,624				722,379			-	0.8				6,760,604				1,499,286
Other areas			364,760				344,094			+	6.0				3,441,132				698,305
			1,666,833				1,708,422			-	2.4				15,724,840				3,533,759
Total		¥	2,113,432			¥	2,166,724			-	2.5			$	19,938,038			¥	4,481,346

Notes:  1.	The primary products included in each of the product segments are as follows:
	Business machines:

Office imaging products :		Office network digital multifunction devices (MFDs) / Color network digital MFDs / Office copying machines / Personal-use copying machines / Full-color copying machines

Computer peripherals :		Laser beam printers / Inkjet multifunction peripherals / Single function inkjet printers / Image scanners

Business information products :		Computer information systems / Document scanners / Personal information products

Cameras :		Digital SLR cameras / Digital compact cameras / Interchangeable lenses / Digital video camcorders

Optical and other products :		Semiconductor production equipment / Mirror projection mask aligners for LCD panels / Broadcasting equipment / Medical equipment / Large format printers / Components

2.

The principal countries and regions included in each regional category are as follows:

Americas:		United States of America, Canada, Latin America / Europe: England, Germany, France, Netherlands /

Other Areas:		Asian regions, China, Oceania

CANON INC. AND SUBSIDIARIES

CONSOLIDATED

3. SEGMENT INFORMATION BY PRODUCT

Results for the second quarter		Millions of yen												Thousands of
														U.S. dollars
		Three months				Three months				Change(%)				Three months
		ended				ended								ended
		June 30, 2008				June 30, 2007								June 30, 2008
		(Unaudited)				(Unaudited)								(Unaudited)
Business machines
Net sales:
Unaffiliated customers		¥	697,208			¥	731,196			-	4.6			$	6,577,434
Intersegment			-				-				-				-
Total			697,208				731,196			-	4.6				6,577,434
Operating cost and expenses			557,349				572,236			-	2.6				5,258,009
Operating profit			139,859				158,960			-	12.0				1,319,425
Cameras
Net sales:
Unaffiliated customers		¥	310,416			¥	297,131			+	4.5			$	2,928,453
Intersegment			-				-				-				-
Total			310,416				297,131			+	4.5				2,928,453
Operating cost and expenses			243,557				220,358			+	10.5				2,297,708
Operating profit			66,859				76,773			-	12.9				630,745
Optical and other products
Net sales:
Unaffiliated customers		¥	98,270			¥	98,604			-	0.3			$	927,075
Intersegment			65,702				56,258			+	16.8				619,830
Total			163,972				154,862			+	5.9				1,546,905
Operating cost and expenses			163,785				151,469			+	8.1				1,545,141
Operating profit			187				3,393			-	94.5				1,764
Corporate and Eliminations
Net sales:
Unaffiliated customers		¥	-			¥	-				-			$	-
Intersegment			(65,702	)			(56,258	)			-				(619,830	)
Total			(65,702	)			(56,258	)			-				(619,830	)
Operating cost and expenses			(18,950	)			1,395				-				(178,773	)
Operating profit			(46,752	)			(57,653	)			-				(441,057	)
Consolidated
Net sales:
Unaffiliated customers		¥	1,105,894			¥	1,126,931			-	1.9			$	10,432,962
Intersegment			-				-				-				-
Total			1,105,894				1,126,931			-	1.9				10,432,962
Operating cost and expenses			945,741				945,458			+	0.0				8,922,085
Operating profit			160,153				181,473			-	11.7				1,510,877

CANON INC. AND SUBSIDIARIES

CONSOLIDATED

 

Results for the first half		Millions of yen												Thousands of				Millions of yen
														U.S. dollars
		Six months				Six months				Change(%)				Six months				Year ended
		ended				ended								ended				December 31,
		June 30, 2008				June 30, 2007								June 30, 2008				2007
		(Unaudited)				(Unaudited)								(Unaudited)
Business machines
Net sales:
Unaffiliated customers		¥	1,388,994			¥	1,446,587			-	4.0			$	13,103,717			¥	2,935,542
Intersegment			-				-				-				-				-
Total			1,388,994				1,446,587			-	4.0				13,103,717				2,935,542
Operating cost and expenses			1,085,956				1,111,116			-	2.3				10,244,868				2,285,281
Operating profit			303,038				335,471			-	9.7				2,858,849				650,261
Cameras
Net sales:
Unaffiliated customers		¥	529,411			¥	519,574			+	1.9			$	4,994,443			¥	1,152,663
Intersegment			-				-				-				-				-
Total			529,411				519,574			+	1.9				4,994,443				1,152,663
Operating cost and expenses			416,826				382,271			+	9.0				3,932,320				845,237
Operating profit			112,585				137,303			-	18.0				1,062,123				307,426
Optical and other products
Net sales:
Unaffiliated customers		¥	195,027			¥	200,563			-	2.8			$	1,839,878			¥	393,141
Intersegment			121,917				107,917			+	13.0				1,150,161				238,659
Total			316,944				308,480			+	2.7				2,990,039				631,800
Operating cost and expenses			311,427				287,095			+	8.5				2,937,992				610,720
Operating profit			5,517				21,385			-	74.2				52,047				21,080
Corporate and Eliminations
Net sales:
Unaffiliated customers		¥	-			¥	-				-			$	-			¥	-
Intersegment			(121,917	)			(107,917	)			-				(1,150,161	)			(238,659	)
Total			(121,917	)			(107,917	)			-				(1,150,161	)			(238,659	)
Operating cost and expenses			(31,760	)			(2,634	)			-				(299,623	)			(16,565	)
Operating profit			(90,157	)			(105,283	)			-				(850,538	)			(222,094	)
Consolidated
Net sales:
Unaffiliated customers		¥	2,113,432			¥	2,166,724			-	2.5			$	19,938,038			¥	4,481,346
Intersegment			-				-				-				-				-
Total			2,113,432				2,166,724			-	2.5				19,938,038				4,481,346
Operating cost and expenses			1,782,449				1,777,848			+	0.3				16,815,557				3,724,673
Operating profit			330,983				388,876			-	14.9				3,122,481				756,673

CANON INC. AND SUBSIDIARIES

CONSOLIDATED

4. SEGMENT INFORMATION BY GEOGRAPHIC AREA

 

Results for the first half		Millions of yen												Thousands of				Millions of yen
														U.S. dollars
		Six months				Six months				Change(%)				Six months				Year ended
		ended				ended								ended				December 31,
		June 30, 2008				June 30, 2007								June 30, 2008				2007
		(Unaudited)				(Unaudited)								(Unaudited)
Japan
Net sales:
Unaffiliated customers		¥	501,874			¥	509,863			-	1.6			$	4,734,660			¥	1,048,310
Intersegment			1,193,604				1,187,290			+	0.5				11,260,415				2,494,251
Total			1,695,478				1,697,153			-	0.1				15,995,075				3,542,561
Operating cost and expenses			1,330,652				1,279,891			+	4.0				12,553,320				2,722,672
Operating profit			364,826				417,262			-	12.6				3,441,755				819,889
Americas
Net sales:
Unaffiliated customers		¥	581,309			¥	638,428			-	8.9			$	5,484,047			¥	1,329,479
Intersegment			1,698				2,357			-	28.0				16,019				4,608
Total			583,007				640,785			-	9.0				5,500,066				1,334,087
Operating cost and expenses			570,535				616,935			-	7.5				5,382,406				1,281,805
Operating profit			12,472				23,850			-	47.7				117,660				52,282
Europe
Net sales:
Unaffiliated customers		¥	715,716			¥	721,697			-	0.8			$	6,752,038			¥	1,499,821
Intersegment			2,378				1,891			+	25.8				22,434				3,496
Total			718,094				723,588			-	0.8				6,774,472				1,503,317
Operating cost and expenses			700,913				693,929			+	1.0				6,612,387				1,441,972
Operating profit			17,181				29,659			-	42.1				162,085				61,345
Others
Net sales:
Unaffiliated customers		¥	314,533			¥	296,736			+	6.0			$	2,967,293			¥	603,736
Intersegment			386,513				406,074			-	4.8				3,646,349				824,844
Total			701,046				702,810			-	0.3				6,613,642				1,428,580
Operating cost and expenses			674,447				678,757			-	0.6				6,362,708				1,378,306
Operating profit			26,599				24,053			+	10.6				250,934				50,274
Corporate and Eliminations
Net sales:
Unaffiliated customers		¥	-			¥	-				-			$	-			¥	-
Intersegment			(1,584,193	)			(1,597,612	)			-				(14,945,217	)			(3,327,199	)
Total			(1,584,193	)			(1,597,612	)			-				(14,945,217	)			(3,327,199	)
Operating cost and expenses			(1,494,098	)			(1,491,664	)			-				(14,095,264	)			(3,100,082	)
Operating profit			(90,095	)			(105,948	)			-				(849,953	)			(227,117	)
Consolidated
Net sales:
Unaffiliated customers		¥	2,113,432			¥	2,166,724			-	2.5			$	19,938,038			¥	4,481,346
Intersegment			-				-				-				-				-
Total			2,113,432				2,166,724			-	2.5				19,938,038				4,481,346
Operating cost and expenses			1,782,449				1,777,848			+	0.3				16,815,557				3,724,673
Operating profit			330,983				388,876			-	14.9				3,122,481				756,673