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 .... October........................................................ , 2009   

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.

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

The following materials are included.

1. CONSOLIDATED RESULTS FOR THE THIRD QUARTER AND THE NINE MONTHS ENDED SEPTEMBER 30, 2009

CONSOLIDATED RESULTS FOR THE THIRD QUARTER AND
THE NINE MONTHS ENDED SEPTEMBER 30, 2009

October 27, 2009

CONSOLIDATED RESULTS FOR THE THIRD QUARTER

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

		Actual
		Three months				Three months								Three months
		ended				ended				Change(%)				ended
		September 30, 2009				September 30, 2008								September 30, 2009
Net sales		¥	774,324			¥	985,989			-	21.5			$	8,603,600
Operating profit			59,989				129,266			-	53.6				666,544
Income before income taxes			63,548				124,989			-	49.2				706,089
Net income attributable to Canon Inc.		¥	36,734			¥	83,041			-	55.8			$	408,156
Net income attributable to Canon Inc. stockholders per share:
- Basic		¥	29.76			¥	65.91			-	54.8			$	0.33
- Diluted			29.76				65.91			-	54.8				0.33
CONSOLIDATED RESULTS FOR THE NINE MONTHS
(Millions of yen, thousands of U.S. dollars, except per share amounts)
		Actual																Projected
		Nine months				Nine months								Nine months				Year ending
		ended				ended				Change(%)				ended				December 31,				Change(%)
		September 30, 2009				September 30, 2008								September 30, 2009				2009
Net sales		¥	2,255,143			¥	3,099,421			-	27.2			$	25,057,144			¥	3,200,000			-	21.8
Operating profit			124,927				460,249			-	72.9				1,388,078				190,000			-	61.7
Income before income taxes			121,434				464,234			-	73.8				1,349,267				180,000			-	62.6
Net income attributable to Canon Inc.		¥	70,083			¥	297,526			-	76.4			$	778,700			¥	110,000			-	64.4
Net income attributable to Canon Inc. stockholders per share:
- Basic		¥	56.77			¥	236.02			-	75.9			$	0.63			¥	89.11			-	63.8
- Diluted			56.77				236.00			-	75.9				0.63				-				-
		Actual
		As of				As of				Change(%)				As of
		September 30, 2009				December 31, 2008								September 30, 2009
Total assets		¥	3,702,124			¥	3,969,934			-	6.7			$	41,134,711
Canon Inc. stockholders’ equity		¥	2,615,267			¥	2,659,792			-	1.7			$	29,058,522

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 JPY90=U.S.$1, the approximate exchange rate on the Tokyo Foreign Exchange Market as of September 30, 2009, 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

2009 Third Quarter in Review

Looking back at the global economy in the third quarter of 2009, the economic stimulus measures implemented by different countries have started to yield results with indications that we are emerging from the worst of the recession. In developed economies such as the United States, Europe and Japan, while stimulus efforts have led to signs of a turnaround, such as rising consumer spending and a recovery in exports, they have not proven enough to remove the sense of uncertainty about the future amid such factors as the continued severity of employment conditions. As for Asia, the economies of China and India maintained solid growth owing to expanded consumer spending against the backdrop of the economy-boosting measures.

As for the markets in which Canon operates amid these conditions, within the office imaging products market, demand for network digital multifunction devices (MFDs) decreased in each region, leading to sluggish sales for monochrome and color models. In the computer peripherals market, while demand remained weak for laser beam printers, resulting in a drop below the year-ago level, the rate of decline has been gradually narrowing. With regard to inkjet printers, although demand continued to be slack for both single-function and multifunction models, which led to a reduction in market size compared with the same period for the previous year, conditions have begun to gradually improve. As for the cameras segment, while demand for digital single-lens reflex (SLR) cameras displayed solid growth, demand for compact digital cameras remained sluggish amid continued price declines. In the optical equipment segment, demand for steppers, utilized in the production of semiconductors, further decreased while demand for aligners, used to produce liquid crystal display (LCD) panels, showed signs of a recovery. The average value of the yen during the third-quarter was ¥93.46 to the U.S. dollar, a year-on-year appreciation of about ¥14, and ¥133.60 to the euro, a year-on-year appreciation of approximately ¥28.

Although the markets for such products as cameras and inkjet printers, targeting individual consumers, are clearly bottoming out, net sales for the third quarter totaled ¥774.3 billion (U.S.$8,604 million), a year-on-year decline of 21.5%, largely due to the effects of reduced sales volumes of office equipment and other products, a trend that continued from the previous quarter, along with the substantial rise in the value of the yen. Net sales for the nine months ended September 30, 2009 decreased by 27.2% to ¥2,255.1 billion (U.S.$25,057 million). Despite the launch of new products and ongoing cost-cutting efforts aimed at an improved gross profit ratio, the significant impact of such factors as the appreciation of the yen and reductions in sales volumes led to a 3.1 point decline in the ratio to 45.1% for the quarter and 44.1% for the nine-month period. Consequently, gross profit decreased by 26.5% to ¥349.3 billion (U.S.$3,881 million) for the quarter, and by 34.5% to ¥993.6 billion (U.S.$11,040 million) for the three-quarter period. While operating expenses decreased by 16.4% owing to a Group-wide effort to thoroughly curb expenses, operating profit dropped 53.6% to ¥60.0 billion (U.S.$667 million) for the third quarter and 72.9% to ¥124.9 billion (U.S.$1,388 million) for the combined nine-month period. The rate of decline for the third-quarter operating profit has been significantly reduced compared with the first quarter and second quarter of the year. Other income (deductions) recorded a positive turnaround of ¥7.8 billion (U.S.$87 million), mainly reflecting an improvement in currency exchange losses. As a result, income before income taxes totaled ¥63.5 billion (U.S.$706 million) for the quarter, a decline of 49.2%, and ¥121.4 billion (U.S.$1,349 million) for the nine months ended September 30, 2009, a decline of 73.8%. Net income attributable to Canon Inc. also recorded a decrease of 55.8% to ¥36.7 billion (U.S.$408 million) for the quarter, and fell 76.4% to ¥70.1 billion (U.S.$779 million) for the first nine months of the year.

Basic net income attributable to Canon Inc. stockholders per share for the quarter was ¥29.76 (U.S.$0.33), a year-on-year decline of ¥36.15 (U.S.$0.40), while the indicator for the nine months ended September 30, 2009 decreased by ¥179.25 (U.S.$1.99) to ¥56.77 (U.S.$0.63).

Results by Product Segment

Looking at Canon’s third-quarter performance by business sector, within the business machines segment, demand for office equipment remained low overall amid the deterioration of economic conditions. With respect to office imaging products, while digital commercial printers achieved healthy sales in emerging markets, flagging sales for network digital MFDs in all regions along with the strong yen resulted in a year-on-year decline in sales of 28.0% for the quarter and 30.0% for the nine-month period. In the field of computer peripherals, although the optimization of laser-beam-printer trade inventories is in sight, decreased third-quarter sales compared with the corresponding period for the previous year along with the impact of appreciation of the yen, resulted in a 26.8% decline from the year-ago period, and a 35.1% decrease for the nine months combined. As for inkjet printers, amid the stagnant global market, sales volume displayed solid growth in the Americas and in Asia, which contributed to a year-on-year increase in sales volume for the segment. However, due to the impact of the yen’s appreciation and other factors, year-on-year sales for the quarter declined 10.1%, and 17.7% for the first three quarters of the year. Consequently, sales for the computer peripherals segment overall dropped by 22.7% year on year, and by 30.7% for the nine-month period. As for business information products, reduced sales of personal computers in the Japanese domestic market and other factors led to a sales decline of 23.1% for the quarter, and of 21.0% for the first nine months of the year. Collectively, sales of business machines overall totaled ¥488.8 billion (U.S.$5,431 million), down 24.9% for the quarter, and down 30.1% to ¥1,426.4 billion (U.S.$15,848 million) for the nine months ended September 30, 2009. Operating profit totaled ¥73.0 billion (U.S.$811 million) in the third quarter, falling 45.5% mainly due to the significant decrease in gross profit stemming from the reduction in sales for the quarter, and ¥187.2 billion (U.S.$2,079 million) for the nine-month period, a decline of 57.2%.

Within the cameras segment, the high-resolution, competitively priced EOS Digital Rebel T1i (EOS 500D) and advanced-amateur model EOS 5D Mark II digital SLR cameras continued to enjoy robust sales during the quarter, contributing to growth in sales volume. As for compact digital cameras, although two new ELPH (IXUS)-series models and four new PowerShot-series models were well received by the market, sales volume overall contracted amid stagnant market conditions. Consequently, along with the impact of the appreciation of the yen, sales for the cameras segment overall declined by 8.3% to ¥229.0 billion (U.S.$2,545 million) for the quarter, and by 17.8% to ¥640.6 billion (U.S.$7,118 million) for the nine-month period. Additionally, despite the decrease in sales, third-quarter operating profit for the sector increased by 5.5% to ¥47.6 billion (U.S.$529 million), owing to the increased sales ratio of high-value-added products and the positive effects of cuts in operating expenses. Operating profit for the nine months combined declined by 40.3% to ¥94.2 billion (U.S.$1,047 million).

In the optical and other products segment, sales of steppers remained sluggish due to the worsening of market conditions for memory chips, and sales of aligners dropped, recording a decline in unit sales reflecting the impact of restrained capital investment by LCD panel manufacturers. As a result, sales for the segment totaled ¥56.5 billion (U.S.$628 million) in the third quarter, a decrease of 33.7%, and ¥188.1 billion (U.S.$2,091 million) for the nine-month period, a decrease of 32.9%. Operating profit dropped to negative ¥19.6 billion (U.S.$218 million) for the quarter and ¥37.4 billion (U.S.$416 million) for the nine months due to the significant drop in sales and other factors.

Cash Flow

In the first nine months of 2009, Canon generated cash flow from operating activities of ¥374.5 billion (U.S.$4,161 million), a decrease of ¥60.9 billion (U.S.$677 million) compared with the previous year, mainly due to the decline in consolidated net income, although progress has been made in reducing inventories. As capital investment was focused on items relevant to introducing new products and achieving cost reductions, cash flow from investing activities totaled ¥286.2 billion (U.S.$3,180 million), a year-on-year decrease of ¥99.4 billion (U.S.$1,104 million). Accordingly, free cash flow totaled ¥88.3 billion (U.S.$981 million), an increase of ¥38.5 billion (U.S.$428 million) from the year-ago period.

Cash flow from financing activities recorded an outlay of ¥141.4 billion (U.S.$1,571 million), mainly arising from the dividend payout of ¥135.8 billion (U.S.$1,509 million). Consequently, cash and cash equivalents decreased by ¥45.5 billion (U.S.$506 million) to ¥633.7 billion (U.S.$7,041 million) from the end of the previous year.

Outlook

As for the outlook for the global economy in the fourth quarter, positive signs have begun to appear amid the current global recession as a result of various economic stimulus packages and financial policies launched at the national level with some leading indicators pointing to a bottoming out. Taking into account such future concerns as climbing unemployment rates in developed countries, considerable time will further likely be needed before the global economy realizes a full-fledged turnaround, and conditions are expected to slowly head toward a path of recovery from the end of the year through next year.

In the businesses in which Canon is involved, with regard to network digital MFDs and laser beam printers, although the drop in demand for office equipment has been leveling off, conditions will likely remain challenging. Demand for compact digital cameras is expected to remain stagnant for the time being due to the drop in consumer sentiment resulting from the weak economy, whereas demand for digital SLR cameras is expected to remain strong. As for inkjet printers, conditions are expected to gradually improve. With respect to steppers, projections call for a modest recovery in demand in fiscal 2010 and onwards as device makers reassess their capital expenditure plans, and demand for aligners is also expected to increase next year and beyond as LCD panel manufacturers gear up for increased production.

With regard to currency exchange rates for the fourth quarter, on which Canon’s performance outlook for the full year is based, despite the continued uncertainty over future interest rate policies, economic prospects and other factors for major countries, Canon anticipates exchange rates for the period of ¥90 to the U.S. dollar and ¥130 to the euro, representing an appreciation of approximately ¥6 against the U.S. dollar, and a depreciation of about ¥4 against the euro compared with the previous year. Upon taking into consideration business results along with current market conditions based on these foreign exchange rate assumptions, Canon’s projections for the full year remain unchanged from the previous announcement: net sales of ¥3,200.0 billion (U.S.$35,556 million), operating profit of ¥190.0 billion (U.S.$2,111 million), income before income taxes of ¥180.0 billion (U.S.$2,000 million) and net income attributable to Canon Inc. of ¥110.0 billion (U.S.$1,222 million).

Consolidated Outlook

Fiscal year		Millions of yen
		Year ending								Change				Year ended				Change (%)
		December 31, 2009												December 31, 2008
		Previous Outlook (A)				Revised Outlook (B)				(B - A)				Results (C)				(B - C) / C
Net sales		¥	3,200,000			¥	3,200,000				-			¥	4,094,161				- 21.8	%
Operating profit			190,000				190,000				-				496,074				- 61.7	%
Income before income taxes			180,000				180,000				-				481,147				- 62.6	%
Net income attributable to Canon Inc.		¥	110,000			¥	110,000				-			¥	309,148				- 64.4	%

CANON INC. AND SUBSIDIARIES
		CONSOLIDATED

II. Financial Statements

1.  CONSOLIDATED BALANCE SHEETS

														Thousands of
		Millions of yen												U.S. dollars
		As of				As of								As of
		September 30,				December 31,				Change				September 30,
		2009				2008								2009
ASSETS
Current assets:
Cash and cash equivalents		¥	633,656			¥	679,196			¥	(45,540	)		$	7,040,622
Short-term investments			26,875				7,651				19,224				298,611
Trade receivables, net			491,848				595,422				(103,574	)			5,464,978
Inventories			426,934				506,919				(79,985	)			4,743,711
Prepaid expenses and other current assets			265,484				275,660				(10,176	)			2,949,822
Total current assets			1,844,797				2,064,848				(220,051	)			20,497,744
Noncurrent receivables			14,968				14,752				216				166,311
Investments			90,669				88,825				1,844				1,007,433
Property, plant and equipment, net			1,306,214				1,357,186				(50,972	)			14,513,489
Intangible assets, net			122,034				119,140				2,894				1,355,933
Other assets			323,442				325,183				(1,741	)			3,593,801
Total assets		¥	3,702,124			¥	3,969,934			¥	(267,810	)		$	41,134,711
LIABILITIES AND EQUITY
Current liabilities:
Short-term loans and current portion of long-term debt		¥	4,997			¥	5,540			¥	(543	)		$	55,522
Trade payables			316,068				406,746				(90,678	)			3,511,867
Accrued income taxes			32,834				69,961				(37,127	)			364,822
Accrued expenses			260,542				277,117				(16,575	)			2,894,911
Other current liabilities			109,831				184,636				(74,805	)			1,220,345
Total current liabilities			724,272				944,000				(219,728	)			8,047,467
Long-term debt, excluding current installments			5,837				8,423				(2,586	)			64,856
Accrued pension and severance cost			113,068				110,784				2,284				1,256,311
Other noncurrent liabilities			54,042				55,745				(1,703	)			600,466
Total liabilities			897,219				1,118,952				(221,733	)			9,969,100
Equity:
Canon Inc. stockholders’ equity:
Common stock			174,762				174,762				-				1,941,800
Additional paid-in capital			404,113				403,790				323				4,490,144
Legal reserve			54,483				53,706				777				605,367
Retained earnings			2,810,078				2,876,576				(66,498	)			31,223,089
Accumulated other comprehensive income (loss)			(271,927	)			(292,820	)			20,893				(3,021,411	)
Treasury stock, at cost			(556,242	)			(556,222	)			(20	)			(6,180,467	)
Total Canon Inc. stockholders’ equity			2,615,267				2,659,792				(44,525	)			29,058,522
Noncontrolling interests			189,638				191,190				(1,552	)			2,107,089
Total equity			2,804,905				2,850,982				(46,077	)			31,165,611
Total liabilities and equity		¥	3,702,124			¥	3,969,934			¥	(267,810	)		$	41,134,711
														Thousands of
		Millions of yen												U.S. dollars
		As of				As of								As of
		September 30,				December 31,								September 30,
		2009				2008								2009
Notes:
1. Allowance for doubtful receivables		¥	10,382			¥	9,318							$	115,356
2. Accumulated depreciation			1,788,665				1,635,601								19,874,056
3. Accumulated other comprehensive income (loss):
Foreign currency translation adjustments			(217,698	)			(235,968	)							(2,418,867	)
Net unrealized gains and losses on securities			4,169				1,135								46,322
Net gains and losses on derivative instruments			2,403				1,493								26,700
Pension liability adjustments			(60,801	)			(59,480	)							(675,566	)

CANON INC. AND SUBSIDIARIES		CONSOLIDATED

2.  CONSOLIDATED STATEMENTS OF INCOME

																		Thousands of
Results for the third quarter		Millions of yen																U.S. dollars
		Three months				Three months												Three months
		ended				ended				Change(%)								ended
		September 30, 2009				September 30, 2008												September 30, 2009
Net sales		¥	774,324			¥	985,989				-				21.5			¥	8,603,600
Cost of sales			425,001				510,833												4,722,233
Gross profit			349,323				475,156				-				26.5				3,881,367
Operating expenses:
Selling, general and administrative expenses			215,607				259,219												2,395,634
Research and development expenses			73,727				86,671												819,189
			289,334				345,890												3,214,823
Operating profit			59,989				129,266				-				53.6				666,544
Other income (deductions):
Interest and dividend income			970				4,627												10,778
Interest expense			(20	)			(10	)											(222	)
Other, net			2,609				(8,894	)											28,989
			3,559				(4,277	)											39,545
Income before income taxes			63,548				124,989				-				49.2				706,089
Income taxes			24,604				39,634												273,378
Consolidated net income			38,944				85,355												432,711
Less: Net income attributable to noncontrolling interests			2,210				2,314												24,555
Net income attributable to Canon Inc.		¥	36,734			¥	83,041				-				55.8			¥	408,156

Note:

Consolidated comprehensive income for the three months ended September 30, 2009 and 2008 was JPY 2,845 million (increase) (U.S.$31,611 thousand (increase)) and JPY 18,500 million (increase), respectively.

																		Thousands of
Results for the nine months		Millions of yen																U.S. dollars
		Nine months				Nine months												Nine months
		ended				ended				Change(%)									ended
		September 30, 2009				September 30, 2008												September 30, 2009
Net sales		¥	2,255,143			¥	3,099,421				-				27.2			¥	25,057,144
Cost of sales			1,261,541				1,582,810												14,017,122
Gross profit			993,602				1,516,611				-				34.5				11,040,022
Operating expenses:
Selling, general and administrative expenses			641,342				794,228												7,126,022
Research and development expenses			227,333				262,134												2,525,922
			868,675				1,056,362												9,651,944
Operating profit			124,927				460,249				-				72.9				1,388,078
Other income (deductions):
Interest and dividend income			3,761				15,593												41,789
Interest expense			(241	)			(673	)											(2,678	)
Other, net			(7,013	)			(10,935	)											(77,922	)
			(3,493	)			3,985												(38,811	)
Income before income taxes			121,434				464,234				-				73.8				1,349,267
Income taxes			48,709				156,972												541,211
Consolidated net income			72,725				307,262												808,056
Less: Net income attributable to noncontrolling interests			2,642				9,736												29,356
Net income attributable to Canon Inc.		¥	70,083			¥	297,526				-				76.4			¥	778,700

Note:

Consolidated comprehensive income for the nine months ended September 30, 2009 and 2008 was JPY 94,118 million (increase) (U.S.$1,045,756 thousand (increase)) and JPY 185,966 million (increase), respectively.

CANON INC. AND SUBSIDIARIES
		CONSOLIDATED
3. DETAILS OF SALES

Results for the third quarter		Millions of yen												Thousands of U.S. dollars
		Three months				Three months								Three months
Sales by product		ended				ended				Change(%)				ended
		September 30, 2009				September 30, 2008								September 30, 2009
Business machines:
Office imaging products		¥	194,331			¥	269,816			-	28.0			$	2,159,233
Computer peripherals			278,629				360,649			-	22.7				3,095,878
Business information products			15,801				20,537			-	23.1				175,567
			488,761				651,002			-	24.9				5,430,678
Cameras			229,032				249,774			-	8.3				2,544,800
Optical and other products			56,531				85,213			-	33.7				628,122
Total		¥	774,324			¥	985,989			-	21.5			$	8,603,600
		Millions of yen												Thousands of U.S. dollars
		Three months				Three months								Three months
Sales by region		ended				ended				Change(%)				ended
		September 30, 2009				September 30, 2008								September 30, 2009
Japan		¥	161,863			¥	196,971			-	17.8			$	1,798,478
Overseas:
Americas			217,512				286,120			-	24.0				2,416,800
Europe			237,452				316,655			-	25.0				2,638,356
Other areas			157,497				186,243			-	15.4				1,749,966
			612,461				789,018			-	22.4				6,805,122
Total		¥	774,324			¥	985,989			-	21.5			$	8,603,600
Results for the nine months		Millions of yen												Thousands of U.S. dollars
		Nine months				Nine months								Nine months
Sales by product		ended				ended				Change(%)				ended
		September 30, 2009				September 30, 2008								September 30, 2009
Business machines:
Office imaging products		¥	608,197			¥	868,915			-	30.0			$	6,757,744
Computer peripherals			765,014				1,103,810			-	30.7				8,500,156
Business information products			53,145				67,271			-	21.0				590,500
			1,426,356				2,039,996			-	30.1				15,848,400
Cameras			640,637				779,185			-	17.8				7,118,189
Optical and other products			188,150				280,240			-	32.9				2,090,555
Total		¥	2,255,143			¥	3,099,421			-	27.2			$	25,057,144
		Millions of yen												Thousands of U.S. dollars
		Nine months				Nine months								Nine months
Sales by region		ended				ended				Change(%)				ended
		September 30, 2009				September 30, 2008								September 30, 2009
Japan		¥	504,745			¥	643,570			-	21.6			$	5,608,278
Overseas:
Americas			619,372				871,569			-	28.9				6,881,911
Europe			686,627				1,033,279			-	33.5				7,629,189
Other areas			444,399				551,003			-	19.3				4,937,766
			1,750,398				2,455,851			-	28.7				19,448,866
Total		¥	2,255,143			¥	3,099,421			-	27.2			$	25,057,144

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 / Compact digital 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
4. CONSOLIDATED STATEMENTS OF CASH FLOWS

		Millions of yen								Thousands of U.S. dollars
		Nine months				Nine months				Nine months
		ended				ended				ended
		September 30, 2009				September 30, 2008				September 30, 2009
Cash flows from operating activities:
Consolidated net income		¥	72,725			¥	307,262			$	808,056
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization			234,528				252,911				2,605,867
Loss on disposal of property, plant and equipment			2,854				4,699				31,711
Deferred income taxes			10,244				(1,908	)			113,822
Decrease in trade receivables			105,239				133,864				1,169,322
Decrease (increase) in inventories			87,088				(122,385	)			967,644
(Decrease) increase in trade payables			(89,518	)			27,491				(994,644	)
Decrease in accrued income taxes			(38,160	)			(89,298	)			(424,000	)
Decrease in accrued expenses			(20,647	)			(23,499	)			(229,411	)
Increase (decrease) in accrued (prepaid) pension and severance cost			2,120				(7,059	)			23,556
Other, net			8,054				(46,643	)			89,488
Net cash provided by operating activities			374,527				435,435				4,161,411
Cash flows from investing activities:
Purchases of fixed assets			(261,890	)			(342,830	)			(2,909,889	)
Proceeds from sale of fixed assets			8,529				4,556				94,767
Purchases of available-for-sale securities			(324	)			(7,206	)			(3,600	)
Proceeds from sale and maturity of available-for-sale securities			437				4,062				4,856
Proceeds from maturity of held-to-maturity securities			—				10,000				—
(Increase) decrease in time deposits			(17,813	)			4,929				(197,922	)
Acquisitions of subsidiaries, net of cash acquired			(2,979	)			(4,397	)			(33,100	)
Purchases of other investments			(13,959	)			(45,276	)			(155,100	)
Other, net			1,765				(9,461	)			19,610
Net cash used in investing activities			(286,234	)			(385,623	)			(3,180,378	)
Cash flows from financing activities:
Proceeds from issuance of long-term debt			2,736				6,510				30,400
Repayments of long-term debt			(4,686	)			(14,875	)			(52,067	)
Decrease in short-term loans			(174	)			(2,630	)			(1,933	)
Dividends paid			(135,793	)			(145,024	)			(1,508,811	)
Repurchases of treasury stock, net			(31	)			(19,902	)			(344	)
Other, net			(3,433	)			(16,052	)			(38,145	)
Net cash used in financing activities			(141,381	)			(191,973	)			(1,570,900	)
Effect of exchange rate changes on cash and cash equivalents			7,548				(64,983	)			83,867
Net change in cash and cash equivalents			(45,540	)			(207,144	)			(506,000	)
Cash and cash equivalents at beginning of period			679,196				944,463				7,546,622
Cash and cash equivalents at end of period		¥	633,656			¥	737,319			$	7,040,622

CANON INC. AND SUBSIDIARIES

CONSOLIDATED

5. NOTE FOR GOING CONCERN ASSUMPTION

     Not applicable.

6. SEGMENT INFORMATION

(1) SEGMENT INFORMATION BY PRODUCT

														Thousands of
Results for the third quarter		Millions of yen												U.S. dollars
		Three months				Three months								Three months
		ended				ended				Change(%)				ended
		September 30, 2009				September 30, 2008								September 30, 2009
Business Machines
Net sales:
Unaffiliated customers		¥	488,761			¥	651,002			-	24.9			$	5,430,678
Intersegment			-				-				-				-
Total			488,761				651,002			-	24.9				5,430,678
Operating cost and expenses			415,764				516,982			-	19.6				4,619,600
Operating profit		¥	72,997			¥	134,020			-	45.5			$	811,078
Cameras
Net sales:
Unaffiliated customers		¥	229,032			¥	249,774			-	8.3			$	2,544,800
Intersegment			-				-				-				-
Total			229,032				249,774			-	8.3				2,544,800
Operating cost and expenses			181,446				204,686			-	11.4				2,016,067
Operating profit		¥	47,586			¥	45,088			+	5.5			$	528,733
Optical and Other Products
Net sales:
Unaffiliated customers		¥	56,531			¥	85,213			-	33.7			$	628,122
Intersegment			49,670				61,447			-	19.2				551,889
Total			106,201				146,660			-	27.6				1,180,011
Operating cost and expenses			125,833				143,206			-	12.1				1,398,144
Operating profit (loss)		¥	(19,632	)		¥	3,454				-			$	(218,133	)
Corporate and Eliminations
Net sales:
Unaffiliated customers		¥	-			¥	-				-			$	-
Intersegment			(49,670	)			(61,447	)			-				(551,889	)
Total			(49,670	)			(61,447	)			-				(551,889	)
Operating cost and expenses			(8,708	)			(8,151	)			-				(96,755	)
Operating profit (loss)		¥	(40,962	)		¥	(53,296	)			-			$	(455,134	)
Consolidated
Net sales:
Unaffiliated customers		¥	774,324			¥	985,989			-	21.5			$	8,603,600
Intersegment			-				-				-				-
Total			774,324				985,989			-	21.5				8,603,600
Operating cost and expenses			714,335				856,723			-	16.6				7,937,056
Operating profit		¥	59,989			¥	129,266			-	53.6			$	666,544

Note:

General corporate expenses of JPY40,962 million (U.S.$455,134 thousand) and JPY52,608 million in the three months ended September 30, 2009 and 2008, respectively, are included in “Corporate and Eliminations.”

CANON INC. AND SUBSIDIARIES

CONSOLIDATED

														Thousands of
Results for the nine months		Millions of yen												U.S. dollars
		Nine months				Nine months								Nine months
		ended				ended				Change(%)				ended
		September 30, 2009				September 30, 2008								September 30, 2009
Business Machines
Net sales:
Unaffiliated customers		¥	1,426,356			¥	2,039,996			-	30.1			$	15,848,400
Intersegment			-				-				-				-
Total			1,426,356				2,039,996			-	30.1				15,848,400
Operating cost and expenses			1,239,203				1,602,938			-	22.7				13,768,922
Operating profit		¥	187,153			¥	437,058			-	57.2			$	2,079,478
Cameras
Net sales:
Unaffiliated customers		¥	640,637			¥	779,185			-	17.8			$	7,118,189
Intersegment			-				-				-				-
Total			640,637				779,185			-	17.8				7,118,189
Operating cost and expenses			546,441				621,512			-	12.1				6,071,567
Operating profit		¥	94,196			¥	157,673			-	40.3			$	1,046,622
Optical and Other Products
Net sales:
Unaffiliated customers		¥	188,150			¥	280,240			-	32.9			$	2,090,555
Intersegment			139,354				183,364			-	24.0				1,548,378
Total			327,504				463,604			-	29.4				3,638,933
Operating cost and expenses			364,902				454,633			-	19.7				4,054,466
Operating profit (loss)		¥	(37,398	)		¥	8,971				-			$	(415,533	)
Corporate and Eliminations
Net sales:
Unaffiliated customers		¥	-			¥	-				-			$	-
Intersegment			(139,354	)			(183,364	)			-				(1,548,378	)
Total			(139,354	)			(183,364	)			-				(1,548,378	)
Operating cost and expenses			(20,330	)			(39,911	)			-				(225,889	)
Operating profit (loss)		¥	(119,024	)		¥	(143,453	)			-			$	(1,322,489	)
Consolidated
Net sales:
Unaffiliated customers		¥	2,255,143			¥	3,099,421			-	27.2			$	25,057,144
Intersegment			-				-				-				-
Total			2,255,143				3,099,421			-	27.2				25,057,144
Operating cost and expenses			2,130,216				2,639,172			-	19.3				23,669,066
Operating profit		¥	124,927			¥	460,249			-	72.9			$	1,388,078