Operating profit at Canon, the world's largest digital camera maker ahead of Sony Corp and Nikon Corp, came in at ¥35.8 billion ($401.7 million) in October-December, down from ¥193.58 billion a year earlier.

Canon's profitability was also hit by steep price falls and the strength of the yen, which makes Japanese products less price-competitive overseas and eats into exporters' revenues when converted into the Japanese currency.

For 2009, Canon forecast an operating profit of ¥160 billion, down from ¥496.1 billion a year earlier and compared with the consensus forecast for a ¥309.8 billion profit in a poll of 16 analysts by Reuters Estimates.

Shares in Canon, which competes with Xerox Corp and Ricoh Co Ltd in copiers and printers, lost 47% over the past year, compared with a 49% fall in the Tokyo market's electrical machinery index. (Reuters)