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 ^....       January      ^{................................................................}     ,        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.

        Hiroshi Kawashimo
        Deputy Senior General Manager
        Global Finance Center
        Canon Inc.

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

The following material is included.

1. Results For The Fourth Quarter And The Fiscal Year Ended December 31, 2007

2. Notice Concerning Change of Representative Director

3. Notice Regarding Introduction of Executive Officer System

4. Notice Regarding Issuance of Stock Options (Share Options)

RESULTS FOR THE FOURTH QUARTER
AND THE FISCAL YEAR ENDED DECEMBER 31, 2007

January 30, 2008

CONSOLIDATED RESULTS

		(Millions of yen, thousands of U.S. dollars, except per share amounts)
		Actual																Projected
		Year ended				Year ended				Change(%)				Year ended				Year ending				Change(%)
		December 31, 2007				December 31, 2006								December 31, 2007				December 31, 2008
Net sales		¥	4,481,346			¥	4,156,759			+	7.8			$	39,310,053			¥	4,720,000			+	5.3
Operating profit			756,673				707,033			+	7.0				6,637,482				800,000			+	5.7
Income before income taxes and minority interests			768,388				719,143			+	6.8				6,740,246				820,000			+	6.7
Net income		¥	488,332			¥	455,325			+	7.2			$	4,283,614			¥	520,000			+	6.5
Net income per share:
- Basic		¥	377.59			¥	341.95			+	10.4			$	3.31			¥	412.36			+	9.2
- Diluted			377.53				341.84			+	10.4				3.31				—				—
		Actual
		As of				As of				Change(%)				As of
		December 31, 2007				December 31, 2006								December 31, 2007
Total assets		¥	4,512,625			¥	4,521,915			-	0.2			$	39,584,430
Stockholders’ equity		¥	2,922,336			¥	2,986,606			-	2.2			$	25,634,526
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 JPY114 = U.S.$1, the approximate exchange rate on the Tokyo Foreign Exchange Market as of December 28, 2007, solely for the convenience of the reader.
NON-CONSOLIDATED RESULTS
(Millions of yen, thousands of U.S. dollars, except per share amounts)
		Actual
		Year ended				Year ended				Change(%)				Year ended
		December 31,				December 31,								December 31,
		2007				2006								2007
Net sales		¥	2,887,912			¥	2,729,657			+	5.8			$	25,332,561
Operating profit			533,841				511,157			+	4.4				4,682,816
Ordinary profit			552,843				523,996			+	5.5				4,849,500
Net income		¥	366,973			¥	337,520			+	8.7			$	3,219,061
Net income per share:
- Basic		¥	283.75			¥	253.48			+	11.9			$	2.49
- Diluted			283.70				253.39			+	12.0				2.49
Dividend per share			110.00				83.33			+	32.0				0.96
		Actual
		As of				As of				Change(%)				As of
		December 31, 2007				December 31, 2006								December 31, 2007
Total assets		¥	2,790,892			¥	2,938,072			-	5.0			$	24,481,509
Net assets		¥	1,890,566			¥	2,109,283			-	10.4			$	16,583,912

Notes:			1.			U.S. dollar amounts are translated from yen at the rate of JPY114 = U.S.$1, the approximate exchange rate on the Tokyo Foreign Exchange Market as of December 28, 2007, solely for the convenience of the reader.
			2.			Canon made a three-for-two stock split on July 1, 2006, though per share information for the fiscal year ended December 31, 2006 has been adjusted to reflect the stock split.

     

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

2007 in Review

Looking back at the global economy in 2007, the U.S. economy proved sluggish in the second half of the year as the fallout from the subprime loan crisis resulted in a decline not only in housing investment, but also in consumer spending. In Europe, the region moved toward moderate recovery as domestic demand expanded in major European countries, boosted by such factors as increased consumer spending owing to continued improvements in the employment environment. Within Asia, the Chinese economy maintained a high growth rate while other economies in the region also enjoyed generally favorable conditions, primarily due to export growth. In Japan, the economy maintained a trend toward recovery, buoyed by an improvement in consumer spending along with increased capital spending fueled by strong corporate earnings.

As for the markets in which the Canon Group operates, within the camera segment, demand for digital single-lens reflex (SLR) cameras and compact digital cameras continued to realize healthy growth during the year. Within the office imaging products market, demand for network digital multifunction devices (MFDs) remained solid as the office market shifted toward color models in all regions. As for computer peripherals, including printers, demand for laser beam printers continued to grow for both color and monochrome low-end models. Within the inkjet printer market, as the shift in demand from single-function to multifunction machines gained momentum, price competition for multifunction models increased in severity. In the optical equipment segment, while demand for projection aligners, which are used to produce liquid crystal display (LCD) panels, remained at a low level due to restrained investment by LCD manufacturers, demand for steppers, used in the production of semiconductors, remained at approximately the same level as the previous year. The average value of the yen for the year was ¥117.50 to the U.S. dollar and ¥161.41 to the euro, representing a slight year-on-year decrease against the U.S. dollar, and about a 10% decline against the euro.

Amid these conditions, Canon’s consolidated net sales in 2007 increased by 7.8% from the year-ago period to ¥4,481.3 billion (U.S.$39,310 million), boosted by a solid rise in sales of digital cameras, color network MFDs, and laser beam printers, along with the positive effect of favorable currency exchange rates. The gross profit ratio improved 0.5 points year on year to reach 50.1%. The improved gross profit ratio was mainly the result of such factors as the launch of new products and the in-house manufacturing of key components and key devices, in addition to cost-reduction efforts realized through ongoing production-reform and procurement-reform activities, which absorbed the effects of escalating raw material costs and severe price competition in the consumer products market. Owing to the improved gross profit ratio, gross profit increased by 9.1% year on year to ¥2,247.0 billion (U.S.$19,710 million). As for operating expenses, although the growth in selling, general and administrative expenses—which increased 7.4% year on year—remained less than revenue growth, R&D expenditures grew by 19.4% from the year-ago period to ¥368.3 billion (U.S.$3,230 million) due to active R&D investment, resulting in an increase in the operating expense to net sales ratio of 0.6 points year on year to 33.2%. In addition, the company implemented a change in the accounting method used to calculate depreciation of fixed assets at the start of the second quarter of the year, which resulted in an increase of ¥63.8 billion (U.S.$559 million) compared with the previously used method. Consequently, operating profit in 2007 totaled ¥756.7 billion (U.S.$6,637 million), a year-on-year increase of 7.0% and an all-time high for the company. Other income (deductions) stayed at almost the same level as the previous year. Income before income taxes and minority interests in 2007 totaled ¥768.4 billion (U.S.$6,740 million), a year-on-year increase of 6.8%, while net income for the year totaled ¥488.3 billion (U.S.$4,284 million), both marking all-time highs.

Basic net income per share for the year was ¥377.59 (U.S.$3.31), a year-on-year increase of ¥35.64 (U.S.$0.31).

Results by Product Segment

In the business machine segment, as demand for network digital MFDs shifted toward color models in both the domestic Japanese and overseas markets, the competitively priced iR C2880 series and the high-end iR C5185 series continued to enjoy strong sales. And among monochrome network digital MFDs, the iR5055 series and the new energy-saving iR3025 series contributed to expanded sales. Additionally, the company marked its entry into the commercial print market with the launch of the new imagePRESS C7000VP. Overall, sales of office imaging products in 2007 realized a year-on-year increase of 8.8%. In the field of computer peripherals, while laser beam printers enjoyed a year-on-year increase of over 20% in unit sales,

with strong demand for both color and monochrome low-end models, and consumables also growing favorably, resulting in an increase of 10.5% in sales in value terms. As for inkjet printers, despite a continuing decline in unit sales for single-function models and severe price competition in the market, sales in value terms increased by 9.2% in 2007, boosted by such factors as increased unit sales of multifunction models, including the PIXMA MP600/610, and healthy sales growth for consumables. As a result, sales of computer peripherals for 2007 realized a year-on-year increase of 9.9%. With regard to business information products, sales increased by 0.5%, roughly matching the level achieved in the previous year. Collectively, sales of business machines for 2007 totaled ¥2,935.5 billion (U.S.$25,750 million), a year-on-year increase of 9.1%. Operating profit for the business machines segment totaled ¥650.3 billion (U.S.$5,704 million), an increase of 8.5% year on year, lifted by increased unit sales, as well as efforts to curtail expenses.

Within the camera segment, growth was fueled by demand for digital SLR cameras, with particularly strong sales for the compact, lightweight-body EOS DIGITAL REBEL XTi and the advanced-amateur-model EOS 30D/40D which, in turn, led to expanded sales of interchangeable lenses for SLR cameras. As for compact digital cameras, the company strengthened its lineup with the launch of 16 new models—5 stylish ELPH-series models and 11 PowerShot-series models—catering to a diverse range of shooting styles. As a result, unit sales of digital cameras for 2007 increased by approximately 17% from the year-ago period. Consequently, camera sales overall increased by 10.6% year on year to ¥1,152.7 billion (U.S.$10,111 million). Operating profit for the camera segment totaled ¥307.4 billion (U.S.$2,697 million), a year-on-year increase of 14.4%, boosted by such factors as the suppression of price declines through the launch of new products and continued cost-reduction efforts realized through ongoing production-reform and procurement-reform activities.

In the optical and other products segment, sales of aligners, used to produce LCD panels, decreased amid reduced market demand due to restrained investment by LCD manufacturers, and sales of steppers, used in the production of semiconductors, also declined slightly. As a result, sales for the segment totaled ¥393.1 billion (U.S.$3,449 million), a year-on-year decrease of 7.2%. Operating profit for the segment decreased by 49.2% year on year to ¥21.1 billion (U.S.$185 million).

Cash Flow

In the twelve months ended December 31, 2007, Canon generated cash flow from operating activities of about ¥839.3 billion (U.S.$7,362 million), a year-on-year increase of ¥144.0 billion (U.S.$1,263 million), reflecting a steady increase in net sales and net income. Cash flow from investing activities totaled ¥432.5 billion (U.S.$3,794 million) due to such factors as active capital investment, used mainly to expand production capabilities. As a result, free cash flow surpassed the ¥400.0 billion mark for the first time ever, totaling positive ¥406.8 billion (U.S.$3,568 million), representing a ¥172.4 billion (U.S.$1,512 million) improvement from ¥234.4 billion from the year-ago period.

Cash flow from financing activities recorded an outlay of ¥604.4 billion (U.S.$5,302 million), mainly resulting from the dividend payout of ¥131.6 billion (U.S.$1,154 million) in accordance with the company’s basic policy regarding profit distribution and the ¥450.0 billion (U.S.$3,947 million) purchase of treasury stock with the aim of improving capital efficiency and ensuring a flexible capital strategy. Consequently, cash and cash equivalents totaled ¥944.5 billion (U.S.$8,285 million) at December 31, 2007, an amount that, while representing a ¥211.2 billion (U.S.$1,852 million) decrease from the end of the previous year, remained at a high level.

Non-consolidated Results

Canon Inc.’s non-consolidated net sales in 2007 grew by 5.8% year on year to ¥2,887.9 billion (U.S.$25,333 million), while ordinary profit increased by 5.5% year on year to ¥552.8 billion (U.S.$4,850 million). Non-consolidated net income also increased by 8.7% year on year to ¥367.0 billion (U.S.$3,219 million), marking all-time highs for both net sales and net income.

Outlook

With regard to the global economic outlook for the fiscal year 2008, despite the economic slow down in major countries during the first half of the year due to high prices for crude oil and raw materials along with the subprime loan crisis, the economies of Asia and emerging countries are expected to continue recording favorable growth. In the second half of the year, major countries are expected to move toward moderate recovery with the global economy displaying steady growth.

As for the businesses in which Canon is involved, sales for both digital SLR cameras and compact digital cameras are expected to continue enjoying robust growth. Regarding network digital MFDs and laser beam printers, while additional demand is projected for full-color models, severe price competition and shifting demand toward lower-priced models are expected to continue. Within the semiconductor-production equipment market, although the market scale for ArF immersion tools will expand, demand for steppers overall will decline compared with the previous year. As for projection aligners used in the production of LCD panels, demand is expected to recover significantly due to planned increases in investment by LCD manufacturers.

In fiscal year 2008 Canon forecasts consolidated net sales of ¥4,720.0 billion (U.S.$41,404 million), a year-on-year increase of 5.3%, consolidated operating profit of ¥800.0 billion (U.S.$7,018 million), a year-on-year increase of 5.7%, consolidated income before income taxes of ¥820.0 billion (U.S.$7,193 million), a year-on-year increase of 6.7%, and consolidated net income of ¥520.0 billion (U.S.$4,561 million), a year-on-year increase of 6.5%, anticipating the company’s ninth consecutive year of increased consolidated sales and profit. While future interest rate trends in major countries remain uncertain, these forecasts assume currency exchange rates of ¥107 to the U.S. dollar and ¥157 to the euro, representing an approximately 9% appreciation of the yen against the U.S. dollar compared with 2007, and an approximately 3% appreciation against the euro.

Basic Policy regarding Profit Distribution and Dividends for the Current Fiscal Year

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 around 30%.

In accordance with this policy, the company plans to distribute a full-year dividend for fiscal year 2007 amounting to ¥110.00 (U.S.$0.96) (interim dividend of ¥50.00 (U.S.$0.44) per share (already distributed) and year-end dividend of ¥60.00 (U.S.$0.52) per share). For fiscal year 2006, Canon’s full-year dividend was ¥100.00. As the company made a 3-for-2 stock split on July 1, 2006, the company’s full-year dividend in fiscal year 2006 on a split adjusted basis was ¥83.33, representing a ¥26.67 (U.S.$0.23) dividend increase.

Based on the above, Canon’s consolidated payout ratio was 23.1% for 2005 and 24.4% for 2006, and is determined to be 28.8% for 2007.

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 fourth quarter		Millions of yen												Thousands of
														U.S. dollars
		Three months				Three months								Three months
		ended				ended				Change(%)				ended
		December 31, 2007				December 31, 2006								December 31, 2007
Net sales		¥	1,263,799			¥	1,216,535			+	3.9			$	11,085,956
Cost of sales			652,724				622,809								5,725,649
Gross profit			611,075				593,726			+	2.9				5,360,307
Operating expenses:
Selling, general and administrative expenses			309,519				306,768								2,715,079
Research and development expenses			107,980				91,088								947,193
			417,499				397,856								3,662,272
Operating profit			193,576				195,870			-	1.2				1,698,035
Other income (deductions):
Interest and dividend income			7,319				8,711								64,202
Interest expense			(326	)			(1,005	)							(2,860	)
Other, net			(649	)			(5,804	)							(5,693	)
			6,344				1,902								55,649
Income before income taxes and minority interests			199,920				197,772			+	1.1				1,753,684
Income taxes			67,844				68,388								595,123
Income before minority interests			132,076				129,384								1,158,561
Minority interests			4,231				3,820								37,114
Net income		¥	127,845			¥	125,564			+	1.8			$	1,121,447

Note: Comprehensive income for the three months ended December 31, 2007 and 2006 was JPY102,988 million
           (U.S.$903,404 thousand) and JPY149,046 million, respectively.

Results for the fiscal year		Millions of yen												Thousands of
														U.S. dollars
		Year ended				Year ended				Change(%)				Year ended
		December 31, 2007				December 31, 2006								December 31, 2007
Net sales		¥	4,481,346			¥	4,156,759			+	7.8			$	39,310,053
Cost of sales			2,234,365				2,096,279								19,599,693
Gross profit			2,246,981				2,060,480			+	9.1				19,710,360
Operating expenses:
Selling, general and administrative expenses			1,122,047				1,045,140								9,842,518
Research and development expenses			368,261				308,307								3,230,360
			1,490,308				1,353,447								13,072,878
Operating profit			756,673				707,033			+	7.0				6,637,482
Other income (deductions):
Interest and dividend income			32,819				27,153								287,886
Interest expense			(1,471	)			(2,190	)							(12,904	)
Other, net			(19,633	)			(12,853	)							(172,218	)
			11,715				12,110								102,764
Income before income taxes and minority interests			768,388				719,143			+	6.8				6,740,246
Income taxes			264,258				248,233								2,318,053
Income before minority interests			504,130				470,910								4,422,193
Minority interests			15,798				15,585								138,579
Net income		¥	488,332			¥	455,325			+	7.2			$	4,283,614

Note: Comprehensive income for the year ended December 31, 2007 and 2006 was JPY520,284 million
           (U.S.$4,563,895 thousand) and JPY501,883 million, respectively.

CANON INC. AND SUBSIDIARIES

CONSOLIDATED

2. DETAILS OF SALES

Results for the fourth quarter		Millions of yen												Thousands of
														U.S. dollars
		Three months				Three months								Three months
Sales by product		ended				ended				Change(%)				ended
		December 31, 2007				December 31, 2006								December 31, 2007
Business machines:
Office imaging products		¥	352,645			¥	330,505			+	6.7			$	3,093,377
Computer peripherals			420,862				405,955			+	3.7				3,691,772
Business information products			29,668				28,535			+	4.0				260,246
			803,175				764,995			+	5.0				7,045,395
Cameras			365,102				346,439			+	5.4				3,202,649
Optical and other products			95,522				105,101			-	9.1				837,912
Total		¥	1,263,799			¥	1,216,535			+	3.9			$	11,085,956

		Millions of yen												Thousands of
														U.S. dollars
		Three months				Three months								Three months
Sales by region		ended				ended				Change(%)				ended
		December 31, 2007				December 31, 2006								December 31, 2007
Japan		¥	270,620			¥	266,741			+	1.5			$	2,373,860
Overseas:
Americas			380,414				389,362			-	2.3				3,336,965
Europe			437,989				405,600			+	8.0				3,842,009
Other areas			174,776				154,832			+	12.9				1,533,122
			993,179				949,794			+	4.6				8,712,096
Total		¥	1,263,799			¥	1,216,535			+	3.9			$	11,085,956

Results for the fiscal year		Millions of yen												Thousands of
														U.S. dollars
Sales by product		Year ended				Year ended				Change(%)				Year ended
		December 31, 2007				December 31, 2006								December 31, 2007
Business machines:
Office imaging products		¥	1,290,788			¥	1,185,925			+	8.8			$	11,322,702
Computer peripherals			1,537,511				1,398,408			+	9.9				13,486,939
Business information products			107,243				106,754			+	0.5				940,727
			2,935,542				2,691,087			+	9.1				25,750,368
Cameras			1,152,663				1,041,865			+	10.6				10,111,079
Optical and other products			393,141				423,807			-	7.2				3,448,606
Total		¥	4,481,346			¥	4,156,759			+	7.8			$	39,310,053

		Millions of yen												Thousands of
														U.S. dollars
Sales by product		Year ended				Year ended				Change(%)				Year ended
		December 31, 2007				December 31, 2006								December 31, 2007
Japan		¥	947,587			¥	932,290			+	1.6			$	8,312,167
Overseas:
Americas			1,336,168				1,283,646			+	4.1				11,720,772
Europe			1,499,286				1,314,305			+	14.1				13,151,632
Other areas			698,305				626,518			+	11.5				6,125,482
			3,533,759				3,224,469			+	9.6				30,997,886
Total		¥	4,481,346			¥	4,156,759			+	7.8			$	39,310,053

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 / etc.
				Computer peripherals : Laser beam printers / Inkjet multifunction peripherals / Single function inkjet printers / Image scanners / etc.
				Business information products : Computer information systems / Document scanners / Personal information products / etc.
				Cameras : Digital SLR cameras / Compact digital cameras / Interchangeable lenses / Digital video camcorders / etc.
				Optical and other products : Semiconductor production equipment / Mirror projection mask aligners for LCD panels /
				Broadcasting equipment / Medical equipment / Large format printers / Components / etc.
		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 fourth quarter		Millions of yen												Thousands of
														U.S. dollars
		Three months				Three months								Three months
		ended				ended				Change(%)				ended
		December 31, 2007				December 31, 2006								December 31, 2007
Business machines
Net sales:
Unaffiliated customers		¥	803,175			¥	764,995			+	5.0			$	7,045,395
Intersegment			—				—				—				—
Total			803,175				764,995			+	5.0				7,045,395
Operating cost and expenses			640,756				599,430			+	6.9				5,620,667
Operating profit			162,419				165,565			-	1.9				1,424,728
Cameras
Net sales:
Unaffiliated customers		¥	365,102			¥	346,439			+	5.4			$	3,202,649
Intersegment			—				—				—				—
Total			365,102				346,439			+	5.4				3,202,649
Operating cost and expenses			271,835				253,827			+	7.1				2,384,517
Operating profit			93,267				92,612			+	0.7				818,132
Optical and other products
Net sales:
Unaffiliated customers		¥	95,522			¥	105,101			-	9.1			$	837,912
Intersegment			65,381				52,102			+	25.5				573,518
Total			160,903				157,203			+	2.4				1,411,430
Operating cost and expenses			163,558				153,282			+	6.7				1,434,719
Operating profit (loss)			(2,655	)			3,921				—				(23,289	)
Corporate and Eliminations
Net sales:
Unaffiliated customers		¥	—			¥	—				—			$	—
Intersegment			(65,381	)			(52,102	)			—				(573,518	)
Total			(65,381	)			(52,102	)			—				(573,518	)
Operating cost and expenses			(5,926	)			14,126				—				(51,982	)
Operating profit (loss)			(59,455	)			(66,228	)			—				(521,536	)
Consolidated
Net sales:
Unaffiliated customers		¥	1,263,799			¥	1,216,535			+	3.9			$	11,085,956
Intersegment			—				—				—				—
Total			1,263,799				1,216,535			+	3.9				11,085,956
Operating cost and expenses			1,070,223				1,020,665			+	4.9				9,387,921
Operating profit			193,576				195,870			-	1.2				1,698,035

Note:		General corporate expenses of JPY59,318 million (U.S.$520,333 thousand) and JPY66,324 million in the three months ended December 31, 2007 and 2006, respectively, are included in “Corporate and Eliminations.”

CANON INC. AND SUBSIDIARIES

CONSOLIDATED

Results for the fiscal year		Millions of yen												Thousands of
														U.S. dollars
		Year ended				Year ended				Change(%)				Year ended
		December 31, 2007				December 31, 2006								December 31, 2007
Business Machines
Net sales:
Unaffiliated customers		¥	2,935,542			¥	2,691,087			+	9.1			$	25,750,368
Intersegment			—				—				—				—
Total			2,935,542				2,691,087			+	9.1				25,750,368
Operating cost and expenses			2,285,281				2,091,858			+	9.2				20,046,324
Operating profit			650,261				599,229			+	8.5				5,704,044
Assets			1,762,167				1,617,198			+	9.0				15,457,605
Depreciation and amortization			159,309				127,873			+	24.6				1,397,447
Capital expenditure			166,143				154,259			+	7.7				1,457,395
Cameras
Net sales:
Unaffiliated customers		¥	1,152,663			¥	1,041,865			+	10.6			$	10,111,079
Intersegment			—				—				—				—
Total			1,152,663				1,041,865			+	10.6				10,111,079
Operating cost and expenses			845,237				773,127			+	9.3				7,414,360
Operating profit			307,426				268,738			+	14.4				2,696,719
Assets			561,504				542,866			+	3.4				4,925,474
Depreciation and amortization			37,180				28,756			+	29.3				326,140
Capital expenditure			32,870				31,517			+	4.3				288,333
Optical and Other Products
Net sales:
Unaffiliated customers		¥	393,141			¥	423,807			-	7.2			$	3,448,606
Intersegment			238,659				190,687			+	25.2				2,093,499
Total			631,800				614,494			+	2.8				5,542,105
Operating cost and expenses			610,720				573,019			+	6.6				5,357,193
Operating profit			21,080				41,475			-	49.2				184,912
Assets			544,734				501,008			+	8.7				4,778,368
Depreciation and amortization			69,843				37,018			+	88.7				612,658
Capital expenditure			78,449				36,272			+	116.3				688,149
Corporate and Eliminations
Net sales:
Unaffiliated customers		¥	—			¥	—				—			$	—
Intersegment			(238,659	)			(190,687	)			—				(2,093,499	)
Total			(238,659	)			(190,687	)			—				(2,093,499	)
Operating cost and expenses			(16,565	)			11,722				—				(145,306	)
Operating profit (loss)			(222,094	)			(202,409	)			—				(1,948,193	)
Assets			1,644,220				1,860,843			-	11.6				14,422,983
Depreciation and amortization			75,362				68,647			+	9.8				661,071
Capital expenditure			151,087				157,609			-	4.1				1,325,325
Consolidated
Net sales:
Unaffiliated customers		¥	4,481,346			¥	4,156,759			+	7.8			$	39,310,053
Intersegment			—				—				—				—
Total			4,481,346				4,156,759			+	7.8				39,310,053
Operating cost and expenses			3,724,673				3,449,726			+	8.0				32,672,571
Operating profit			756,673				707,033			+	7.0				6,637,482
Assets			4,512,625				4,521,915			-	0.2				39,584,430
Depreciation and amortization			341,694				262,294			+	30.3				2,997,316
Capital expenditure			428,549				379,657			+	12.9				3,759,202

Notes:	1.	General corporate expenses of JPY221,979 million (U.S.$1,947,184 thousand) and JPY202,328 million in the years ended December 31, 2007 and 2006, respectively, are included in “Corporate and Eliminations.”
	2.	Corporate assets of JPY1,644,220 million (U.S.$14,422,983 thousand) and JPY1,860,933 million as of December 31, 2007 and 2006, respectively, which mainly consist of cash and cash equivalents, time deposits, marketable securities, investments and corporate properties, are included in “Corporate and Eliminations.”

CANON INC. AND SUBSIDIARIES

CONSOLIDATED

4. SEGMENT INFORMATION BY GEOGRAPHIC AREA

Results for the fiscal year		Millions of yen												Thousands of
														U.S. dollars
		Year ended				Year ended				Change(%)				Year ended
		December 31, 2007				December 31, 2006								December 31, 2007
Japan
Net sales:
Unaffiliated customers		¥	1,048,310			¥	1,037,657			+	1.0			$	9,195,702
Intersegment			2,494,251				2,311,482			+	7.9				21,879,394
Total			3,542,561				3,349,139			+	5.8				31,075,096
Operating cost and expenses			2,722,672				2,558,685			+	6.4				23,883,087
Operating profit			819,889				790,454			+	3.7				7,192,009
Assets			2,715,294				2,644,116			+	2.7				23,818,368
Americas
Net sales:
Unaffiliated customers		¥	1,329,479			¥	1,277,867			+	4.0			$	11,662,096
Intersegment			4,608				4,764			-	3.3				40,422
Total			1,334,087				1,282,631			+	4.0				11,702,518
Operating cost and expenses			1,281,805				1,236,138			+	3.7				11,243,904
Operating profit			52,282				46,493			+	12.5				458,614
Assets			506,295				432,001			+	17.2				4,441,184
Europe
Net sales:
Unaffiliated customers		¥	1,499,821			¥	1,313,919			+	14.1			$	13,156,325
Intersegment			3,496				3,586			-	2.5				30,666
Total			1,503,317				1,317,505			+	14.1				13,186,991
Operating cost and expenses			1,441,972				1,272,463			+	13.3				12,648,877
Operating profit			61,345				45,042			+	36.2				538,114
Assets			732,579				682,381			+	7.4				6,426,132
Others
Net sales:
Unaffiliated customers		¥	603,736			¥	527,316			+	14.5			$	5,295,930
Intersegment			824,844				792,018			+	4.1				7,235,474
Total			1,428,580				1,319,334			+	8.3				12,531,404
Operating cost and expenses			1,378,306				1,275,817			+	8.0				12,090,404
Operating profit			50,274				43,517			+	15.5				441,000
Assets			367,234				339,314			+	8.2				3,221,351
Corporate and Eliminations
Net sales:
Unaffiliated customers		¥	—			¥	—				—			$	—
Intersegment			(3,327,199	)			(3,111,850	)			—				(29,185,956	)
Total			(3,327,199	)			(3,111,850	)			—				(29,185,956	)
Operating cost and expenses			(3,100,082	)			(2,893,377	)			—				(27,193,701	)
Operating profit (loss)			(227,117	)			(218,473	)			—				(1,992,255	)
Assets			191,223				424,103			-	54.9				1,677,395
Consolidated
Net sales:
Unaffiliated customers		¥	4,481,346			¥	4,156,759			+	7.8			$	39,310,053
Intersegment			—				—				—				—
Total			4,481,346				4,156,759			+	7.8				39,310,053
Operating cost and expenses			3,724,673				3,449,726			+	8.0				32,672,571
Operating profit			756,673				707,033			+	7.0				6,637,482
Assets			4,512,625				4,521,915			-	0.2				39,584,430