Canon, on of the major camera makers able to create a substantial export in Japan, reported a sharp fall in profit there in the most recent quarter. Canon has been hit hard by falling demand for its cameras in the Japanese market as well as volatile currency exchange conditions and a general global economic downturn. The major camera manufacturer is now predicting two-thirds reduction in profit for 2009 over 2008. “A substantial recovery in the economy is unlikely in 2009.Our operating environment will be even harder this year than it was last year,” Masahiro Osawa, Canon’s senior managing director in charge of accounting, said at a news conference. 

Canon laid off workers in 2008 and cut back production sharply, and expects to do the same over the course of the coming year. In addition to its line of digital cameras, Canon supplied approximately 60% of business products such as copiers and fax machines in 2008.