FORM 6-K

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

For the month of .....October................................................................. , 2010  

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, 2010

CONSOLIDATED RESULTS FOR THE THIRD QUARTER AND
THE NINE MONTHS ENDED SEPTEMBER 30, 2010

October 27, 2010

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, 2010				September 30, 2009								September 30, 2010
Net sales		¥	913,151			¥	774,324			+	17.9			$	10,870,845
Operating profit			104,424				59,989			+	74.1				1,243,143
Income before income taxes			108,826				63,548			+	71.3				1,295,548
Net income attributable                     to Canon Inc.		¥	68,195			¥	36,734			+	85.6			$	811,845
Net income attributable to Canon Inc. stockholders per share:
- Basic		¥	55.07			¥	29.76			+	85.0			$	0.66
- Diluted			55.07				29.76			+	85.0				0.66
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, 2010				September 30, 2009								September 30, 2010				2010
Net sales		¥	2,639,035			¥	2,255,143			+	17.0			$	31,417,083			¥	3,710,000			+	15.6
Operating profit			304,705				124,927			+	143.9				3,627,440				390,000			+	79.7
Income before income taxes			310,329				121,434			+	155.6				3,694,393				390,000			+	77.8
Net income attributable                     to Canon Inc.		¥	192,644			¥	70,083			+	174.9			$	2,293,381			¥	245,000			+	86.1
Net income attributable to Canon Inc. stockholders per share:
- Basic		¥	155.79			¥	56.77			+	174.4			$	1.85			¥	198.43			+	86.1
- Diluted			155.79				56.77			+	174.4				1.85				-				-
		Actual
		As of				As of				Change(%)				As of
		September 30, 2010				December 31, 2009								September 30, 2010
Total assets		¥	4,030,551			¥	3,847,557			+	4.8			$	47,982,750
Canon Inc. stockholders’ equity		¥	2,654,979			¥	2,688,109			-	1.2			$	31,606,893

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 JPY84=U.S.$1, the approximate exchange rate on the Tokyo Foreign Exchange Market as of September 30, 2010, 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

2010 Third Quarter in Review

Looking back at the global economy in the third quarter of 2010, economic conditions continued to improve broadly throughout the world. In Japan, consumer spending showed signs of recovery thanks to the effects of such efforts as domestic economic stimulus measures, while in the United States, consumer spending grew steadily despite the unemployment rate remaining at a relatively high level and other concerns. While Europe recorded growth in exports, the pace of economic recovery remained modest as financial concerns within the region were not fully eased. The Asian economies, such as China and India, along with other emerging countries, recorded stable expansion.

As for the markets in which Canon operates amid these conditions, within the office equipment market, demand for network digital multifunction devices (MFDs) recovered, mainly for color models. Additionally, laser printers have rebounded steadily compared with the previous year. As for the consumer products market, demand for digital single-lens reflex (SLR) cameras maintained solid growth across global markets. Although sales of compact digital cameras grew sluggishly in developed countries, demand in emerging markets, such as those in Asia, displayed healthy growth, leading to solid expansion overall. With regard to inkjet printers, demand continued to recover at a steady pace. In the industry and others market, market conditions for semiconductor lithography equipment were marked by an upturn in order placements, owing to improved sentiment within the semiconductor device market, whereas demand for liquid crystal display (LCD) lithography equipment remained relatively unchanged compared with the previous-year level. The average values of the yen during the third quarter and first nine months of the year were ¥85.79 and ¥89.40 to the U.S. dollar, respectively, year-on-year appreciations of approximately ¥8 and ¥5, and ¥110.61 and ¥116.30 to the euro, year-on-year appreciations of approximately ¥23 and ¥13.

Amid the impact of the sharp appreciation of the yen, net sales for the quarter totaled ¥913.2 billion (U.S.$10,871 million), an increase of 17.9% from the year-ago period, and ¥2,639.0 billion (U.S. $31,417 million) for the first nine months, an increase of 17.0%, owing to a substantial recovery in sales of laser printers among office products, continued robust sales of such consumer products as digital SLR cameras, the turnaround within the industry and others market, and the effects of consolidation arising from corporate acquisitions, such as that of Océ N.V. Although the strong yen had a significant impact, the quarterly gross profit ratio rose 3.8 points year on year to 48.9%, and improved 4.8 points to 48.9% for the nine-month period, mainly reflecting the launch of new products and ongoing cost-cutting efforts, along with heightened production turnover accompanying ramped up production. As a result, gross profit rose by 27.9% to ¥446.9 billion (U.S.$5,320 million) for the third quarter and increased by 29.9% to ¥1,290.8 billion (U.S.$15,367 million) for the nine months ended September 30, 2010. Despite the impact of aggressive sales-promotion spending and consolidation, continued Group-wide efforts to thoroughly reduce spending contributed to an operating expenses to sales ratio of 37.5% for the quarter, approximately the same level as for the corresponding period for the previous year, and an improvement of 1.2 points to 37.4% for the nine-month period. Consequently, operating profit recorded growth of 74.1% to ¥104.4 billion (U.S.$1,243 million) for the quarter, and increased approximately 2.4 fold to ¥304.7 billion (U.S.$3,627 million) for the nine-month period. Other income (deductions) recorded an increase largely due to an improvement in foreign currency exchange gains and losses, leading to income before income taxes for the third quarter of ¥108.8 billion (U.S.$1,296 million), an increase of 71.3% year on year, and ¥310.3 billion (U.S.$3,694 million) for the nine months ended September 30, 2010, an approximately 2.6-fold leap from the corresponding period of the previous year. Net income attributable to Canon Inc. grew by 85.6% to ¥68.2 billion (U.S.$812 million) for the quarter, and jumped 2.7 fold to ¥192.6 billion (U.S.$2,293 million) for the nine-month period.

Basic net income attributable to Canon Inc. stockholders per share for the quarter was ¥55.07 (U.S.$0.66), an increase of ¥25.31 (U.S.$0.30) compared with the corresponding quarter of the previous year, and ¥155.79 (U.S.$1.85) for the first nine months of 2010, a year-on-year increase of ¥99.02 (U.S.$1.18).

Results by Segment

Looking at Canon’s quarterly performance by business sector, within the Office Business Unit, while sales volume of color network digital MFDs increased by 38% boosted by the recovery in demand for office equipment along with the introduction of new imageRUNNER ADVANCE-series products, sales volume for monochrome models increased by 24%, reflecting the recovering market conditions. Laser printers, which suffered sluggish sales in the corresponding quarter of the previous year largely due to an adjustment of inventory levels, recorded an increase in sales volume of 61%. Consequently, despite the significant effects of the strong yen, third-quarter sales for the segment totaled ¥506.9 billion (U.S.$6,035 million), growing 25.6% year on year, and ¥1,438.0 billion (U.S.$17,119 million) for the nine months ended September 30, 2010, an increase of 21.9%. Operating profit increased 30.3% to ¥76.3 billion (U.S.$908 million) for the third quarter, and 56.0% to ¥232.2 billion (U.S.$2,764 million) for the combined nine-month period, mainly as a result of expanded sales and the rise in the gross profit ratio.

Within the Consumer Business Unit, sales volumes of such new digital SLR cameras as the new EOS Digital Rebel T2i (EOS 550D) and the competitively priced EOS Digital Rebel T1i (EOS 500D), along with the EOS 5D Mark II and EOS 7D advanced-amateur models, sustained healthy growth. As for compact digital cameras, the Company launched a new ELPH (IXUS)-series model and four new PowerShot-series models, boosting sales volumes particularly in emerging markets. Consequently, sales volume for digital cameras realized a year-on-year increase of 10%. With respect to inkjet printers, although sales displayed solid growth, particularly in Asia, sales volume decreased slightly from the year-ago level. Amid the strong yen environment, sales for the segment rose 3.3% year on year to ¥324.8 billion (U.S.$3,866 million), and 10.2% to ¥979.1 billion (U.S.$11,656 million) for the first nine months. Operating profit increased by 14.0% to ¥58.8 billion (U.S.$700 million) for the quarter, and by 59.7% to ¥173.0 billion (U.S.$2,060 million) for the nine-month period, largely reflecting increased sales and the rise in the gross profit ratio owing to the effects of cost reductions.

In the Industry and Others Business Unit, semiconductor-related independent business sales by Group subsidiaries grew while sales volume of LCD lithography equipment increased appreciably. Sales volume of semiconductor lithography equipment, while remaining at a low level, also gained modestly. As a result, sales for the segment increased 31.7% to ¥109.8 billion (U.S.$1,307 million) for the quarter, and 18.2% to ¥301.0 billion (U.S.$3,584 million) for the combined nine months. Operating profit totaled ¥4.4 billion (U.S.$52 million) for the quarter, a turnaround of ¥21.6 billion (U.S.$257 million) year on year while for the nine-month period, operating loss totaled to ¥4.0 billion (U.S.$47 million), a turnaround of ¥37.0 billion (U.S.$441 million) from the year-ago period owing to expanded sales combined with an improved gross profit ratio.

Cash Flow

During the combined nine months of 2010, cash flows from operating activities totaled ¥519.4 billion (U.S.$6,184 million), an increase of ¥144.9 billion (U.S.$1,725 million) from the year-ago period, mainly due to the continued significant increase in profit. Although investments, such as for the acquisition of shares of Océ N.V. to strengthen the printing business, increased substantially, capital investment was focused on items relevant to introducing new products, which led to a year-on-year decrease in cash flows from investing activities of ¥43.0 billion (U.S.$512 million) to ¥243.2 billion (U.S.$2,895 million). Accordingly, free cash flows totaled ¥276.2 billion (U.S.$3,288 million), an increase of ¥187.9 billion (U.S.$2,237 million) from the corresponding year-ago period.

Cash flows from financing activities recorded an outlay of ¥268.0 billion (U.S.$3,190 million), mainly arising from the dividend payout, the repurchases of treasury stock, and the partial repayment of borrowings of Océ N.V. Cash and cash equivalents decreased by ¥35.6 billion (U.S.$424 million) to ¥759.4 billion (U.S.$9,040 million) from the end of the previous year due to the foreign currency translation adjustments stemming from the strong yen.

Outlook

As for the outlook in the fourth quarter, although developed countries face uncertainty regarding future prospects due to such factors as employment problems and fiscal challenges, these economies appear to be steadily headed toward recovery while China and other emerging nations, which are expected to fuel global growth, are likely to continue enjoying healthy expansion.

In the businesses in which Canon is involved, within the office equipment market, demand for such products as color network digital MFDs and laser printers is projected to head toward a recovery. With respect to the consumer products market, demand for digital SLR cameras is expected to achieve solid growth while sales of compact digital cameras are anticipated to expand modestly. Demand for inkjet printers is likely to expand gradually in response to the economic turnaround. As for the industry and others market, demand for semiconductor lithography equipment is expected to regain momentum as device makers begin investing again, while demand for LCD lithography equipment is also expected to increase significantly as LCD panel manufacturers boost production.

With regard to currency exchange rates for the fourth quarter, on which Canon’s performance outlook is based, despite the uncertainty over future interest rate policies for major countries and other factors along with the effects of the fiscal concerns in Europe, Canon anticipates exchange rates for the period of ¥80 to the U.S. dollar and ¥115 to the euro, representing appreciations of approximately ¥10 against the U.S. dollar, and approximately ¥18 against the euro compared with the previous year. Upon taking into consideration current business sentiment based on these foreign exchange rate assumptions, Canon has revised its previous projections as follows: net sales of ¥3,710.0 billion (U.S.$44,167 million), a year-on-year increase of 15.6%; operating profit of ¥390.0 billion (U.S.$4,643 million), a year-on-year increase of 79.7%; income before income taxes of ¥390.0 billion (U.S.$4,643 million), a year-on-year increase of 77.8%; and net income attributable to Canon Inc. of ¥245.0 billion (U.S.$2,917 million), a year-on-year increase of 86.1%.

Consolidated Outlook Fiscal year		Millions of yen
		Year ending								Change				Year ended				Change (%)
		December 31, 2010												December 31, 2009
		Previous Outlook (A)				Revised Outlook (B)				(B - A)				Results (C)				(B - C) / C
Net sales		¥	3,750,000			¥	3,710,000			¥	(40,000	)		¥	3,209,201				+   15.6	%
Operating profit			360,000				390,000				30,000				217,055				+   79.7	%
Income before income taxes			360,000				390,000				30,000				219,355				+   77.8	%
Net income attributable to
Canon Inc.		¥	240,000			¥	245,000			¥	5,000			¥	131,647				+   86.1	%

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,
		2010				2009								2010
ASSETS
Current assets:
Cash and cash equivalents		¥	759,399			¥	795,034			¥	(35,635	)		$	9,040,464
Short-term investments			58,867				19,089				39,778				700,798
Trade receivables, net			541,538				556,572				(15,034	)			6,446,881
Inventories			470,717				373,241				97,476				5,603,774
Prepaid expenses and other current assets			304,347				273,843				30,504				3,623,178
Total current assets			2,134,868				2,017,779				117,089				25,415,095
Noncurrent receivables			17,083				14,936				2,147				203,369
Investments			81,301				114,066				(32,765	)			967,869
Property, plant and equipment, net			1,235,385				1,269,785				(34,400	)			14,706,964
Intangible assets, net			163,298				117,396				45,902				1,944,024
Other assets			398,616				313,595				85,021				4,745,429
Total assets		¥	4,030,551			¥	3,847,557			¥	182,994			$	47,982,750
LIABILITIES AND EQUITY
Current liabilities:
Short-term loans and current portion of long-term debt		¥	7,649			¥	4,869			¥	2,780			$	91,060
Trade payables			400,904				339,113				61,791				4,772,667
Accrued income taxes			85,077				50,105				34,972				1,012,821
Accrued expenses			316,089				274,300				41,789				3,762,964
Other current liabilities			131,138				115,303				15,835				1,561,167
Total current liabilities			940,857				783,690				157,167				11,200,679
Long-term debt, excluding current installments			5,185				4,912				273				61,726
Accrued pension and severance cost			183,403				115,904				67,499				2,183,369
Other noncurrent liabilities			69,883				63,651				6,232				831,940
Total liabilities			1,199,328				968,157				231,171				14,277,714
Equity:
Canon Inc. stockholders’ equity:
Common stock			174,762				174,762				-				2,080,500
Additional paid-in capital			407,087				404,293				2,794				4,846,274
Legal reserve			56,257				54,687				1,570				669,726
Retained earnings			2,917,861				2,871,437				46,424				34,736,440
Accumulated other comprehensive income (loss)			(349,989	)			(260,818	)			(89,171	)			(4,166,536	)
Treasury stock, at cost			(550,999	)			(556,252	)			5,253				(6,559,511	)
Total Canon Inc. stockholders’ equity			2,654,979				2,688,109				(33,130	)			31,606,893
Noncontrolling interests			176,244				191,291				(15,047	)			2,098,143
Total equity			2,831,223				2,879,400				(48,177	)			33,705,036
Total liabilities and equity		¥	4,030,551			¥	3,847,557			¥	182,994			$	47,982,750
														Thousands of
		Millions of yen												U.S. dollars
		As of				As of								As of
		September 30,				December 31,								September 30,
		2010				2009								2010
Notes:
1. Allowance for doubtful receivables		¥	15,700			¥	11,343							$	186,905
2. Accumulated depreciation			1,920,904				1,815,982								22,867,905
3. Accumulated other comprehensive income (loss):
Foreign currency translation adjustments			(287,890	)			(202,628	)							(3,427,262	)
Net unrealized gains and losses on securities			128				3,285								1,524
Net gains and losses on derivative instruments			(287	)			71								(3,417	)
Pension liability adjustments			(61,940	)			(61,546	)							(737,381	)

CANON INC. AND SUBSIDIARIES

CONSOLIDATED

														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, 2010				September 30, 2009								September 30, 2010
Net sales		¥	913,151			¥	774,324			+	17.9			$	10,870,845
Cost of sales			466,240				425,001								5,550,476
Gross profit			446,911				349,323			+	27.9				5,320,369
Operating expenses:
Selling, general and administrative expenses			265,413				215,607								3,159,678
Research and development expenses			77,074				73,727								917,548
			342,487				289,334								4,077,226
Operating profit			104,424				59,989			+	74.1				1,243,143
Other income (deductions):
Interest and dividend income			1,544				970								18,381
Interest expense			(207	)			(20	)							(2,464	)
Other, net			3,065				2,609								36,488
			4,402				3,559								52,405
Income before income taxes			108,826				63,548			+	71.3				1,295,548
Income taxes			39,904				24,604								475,048
Consolidated net income			68,922				38,944								820,500
Less: Net income attributable to noncontrolling interests			727				2,210								8,655
Net income attributable to Canon Inc.		¥	68,195			¥	36,734			+	85.6			$	811,845

Note:

Consolidated comprehensive income for the three months ended September 30, 2010 and 2009 was JPY 52,105 million (U.S.$620,298 thousand) and JPY 2,845 million, 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, 2010				September 30, 2009								September 30, 2010
Net sales		¥	2,639,035			¥	2,255,143			+	17.0			$	31,417,083
Cost of sales			1,348,193				1,261,541								16,049,916
Gross profit			1,290,842				993,602			+	29.9				15,367,167
Operating expenses:
Selling, general and administrative expenses			756,238				641,342								9,002,834
Research and development expenses			229,899				227,333								2,736,893
			986,137				868,675								11,739,727
Operating profit			304,705				124,927			+	143.9				3,627,440
Other income (deductions):
Interest and dividend income			4,287				3,761								51,036
Interest expense			(1,160	)			(241	)							(13,810	)
Other, net			2,497				(7,013	)							29,727
			5,624				(3,493	)							66,953
Income before income taxes			310,329				121,434			+	155.6				3,694,393
Income taxes			113,879				48,709								1,355,703
Consolidated net income			196,450				72,725								2,338,690
Less: Net income attributable to noncontrolling interests			3,806				2,642								45,309
Net income attributable to Canon Inc.		¥	192,644			¥	70,083			+	174.9			$	2,293,381

Note:

Consolidated comprehensive income for the nine months ended September 30, 2010 and 2009 was JPY 104,852 million (U.S.$1,248,238 thousand) and JPY 94,118 million, respectively.

CANON INC. AND SUBSIDIARIES

CONSOLIDATED

3. DETAILS OF SALES

			Millions of yen												Thousands of
Results for the third quarter															U.S. dollars
			Three months				Three months								Three months
			ended				ended								ended
	Sales by business unit		September 30,				September 30,				Change(%)				September 30,
			2010				2009								2010
	Office		¥	506,915			¥	403,645			+	25.6			$	6,034,702
	Consumer			324,773				314,497			+	3.3				3,866,345
	Industry and Others			109,774				83,362			+	31.7				1,306,833
	Eliminations			(28,311	)			(27,180	)			-				(337,035	)
	Total		¥	913,151			¥	774,324			+	17.9			$	10,870,845
			Millions of yen													Thousands of
															U.S. dollars
			Three months				Three months								Three months
			ended				ended								ended
	Sales by region		September 30,				September 30,				Change(%)				September 30,
			2010				2009								2010
	Japan		¥	159,919			¥	161,863			-	1.2			$	1,903,798
	Overseas:
	Americas			246,695				217,512			+	13.4				2,936,845
	Europe			288,012				237,452			+	21.3				3,428,714
	Other areas			218,525				157,497			+	38.7				2,601,488
				753,232				612,461			+	23.0				8,967,047
	Total		¥	913,151			¥	774,324			+	17.9			$	10,870,845
			Millions of yen													Thousands of
Results for the nine months															U.S. dollars
			Nine months				Nine months								Nine months
			ended				ended								ended
	Sales by business unit		September 30,				September 30,				Change(%)				September 30,
			2010				2009								2010
	Office		¥	1,437,992			¥	1,179,945			+	21.9			$	17,118,952
	Consumer			979,087				888,431			+	10.2				11,655,798
	Industry and Others			301,032				254,680			+	18.2				3,583,714
	Eliminations			(79,076	)			(67,913	)			-				(941,381	)
	Total		¥	2,639,035			¥	2,255,143			+	17.0			$	31,417,083
			Millions of yen													Thousands of
															U.S. dollars
			Nine months				Nine months								Nine months
			ended				ended								ended
	Sales by region		September 30,				September 30,				Change(%)				September 30,
			2010				2009								2010
	Japan		¥	497,580			¥	504,745			-	1.4			$	5,923,571
	Overseas:
	Americas			721,189				619,372			+	16.4				8,585,583
	Europe			829,659				686,627			+	20.8				9,876,893
	Other areas			590,607				444,399			+	32.9				7,031,036
				2,141,455				1,750,398			+	22.3				25,493,512
	Total		¥	2,639,035			¥	2,255,143			+	17.0			$	31,417,083

Notes:	1.	The primary products included in each of the segments are as follows:
Office :					Office network digital multifunction devices (MFDs) / Color network digital MFDs /Personal-use network digital MFDs / Office copying machines /Full-color copying machines /Personal-use copying machines /Laser printers / Large format inkjet printers
Consumer :					Digital SLR cameras / Compact digital cameras / Interchangeable lenses / Digital video camcorders / Inkjet multifunction peripherals / Single function inkjet printers / Image scanners / Broadcasting equipment

		Industry and Others :	Semiconductor lithography equipment / LCD lithography equipment / Medical image recording equipment / Magnetic heads / Micromotors / Computers / Handy terminals / Document scanners / Calculators
	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

										Thousands of
		Millions of yen								U.S. dollars
		Nine months				Nine months				Nine months
		ended				ended				ended
		September 30, 2010				September 30, 2009				September 30, 2010
Cash flows from operating activities:
Consolidated net income		¥	196,450			¥	72,725			$	2,338,690
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization			198,033				234,528				2,357,536
Loss on disposal of property, plant and equipment			8,240				2,854				98,095
Deferred income taxes			3,588				10,244				42,714
Decrease in trade receivables			26,584				105,239				316,476
(Increase) decrease in inventories			(93,981	)			87,088				(1,118,821	)
Increase (decrease) in trade payables			110,507				(89,518	)			1,315,560
Increase (decrease) in accrued income taxes			37,405				(38,160	)			445,298
Increase (decrease) in accrued expenses			9,062				(20,647	)			107,881
Increase in accrued (prepaid) pension
and severance cost			4,451				2,120				52,988
Other, net			19,088				8,054				227,238
Net cash provided by operating activities			519,427				374,527				6,183,655
Cash flows from investing activities:
Purchases of fixed assets			(136,735	)			(261,890	)			(1,627,798	)
Proceeds from sale of fixed assets			1,666				8,529				19,833
Purchases of available-for-sale securities			(10,882	)			(324	)			(129,548	)
Proceeds from sale and maturity of available-for-sale securities			241				437				2,869
Increase in time deposits, net			(40,132	)			(17,813	)			(477,762	)
Acquisitions of subsidiaries, net of cash acquired			(55,604	)			(2,979	)			(661,952	)
Purchases of other investments			(851	)			(13,959	)			(10,131	)
Other, net			(905	)			1,765				(10,773	)
Net cash used in investing activities			(243,202	)			(286,234	)			(2,895,262	)
Cash flows from financing activities:
Proceeds from issuance of long-term debt			3,856				2,736				45,905
Repayments of long-term debt			(4,134	)			(4,686	)			(49,214	)
Decrease in short-term loans, net			(74,002	)			(174	)			(880,976	)
Dividends paid			(136,103	)			(135,793	)			(1,620,274	)
Repurchases of treasury stock, net			(32,903	)			(31	)			(391,702	)
Other, net			(24,672	)			(3,433	)			(293,715	)
Net cash used in financing activities			(267,958	)			(141,381	)			(3,189,976	)
Effect of exchange rate changes on cash and cash equivalents			(43,902	)			7,548				(522,643	)
Net change in cash and cash equivalents			(35,635	)			(45,540	)			(424,226	)
Cash and cash equivalents at beginning of period			795,034				679,196				9,464,690
Cash and cash equivalents at end of period		¥	759,399			¥	633,656			$	9,040,464

CANON INC. AND SUBSIDIARIES

CONSOLIDATED

5. NOTE FOR GOING CONCERN ASSUMPTION

     Not applicable.

6. SEGMENT INFORMATION

(1) SEGMENT INFORMATION BY BUSINESS UNIT

														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, 2010				September 30, 2009								September 30, 2010
Office
Net sales:
External customers		¥	505,049			¥	401,260			+	25.9			$	6,012,488
Intersegment			1,866				2,385			-	21.8				22,214
Total			506,915				403,645			+	25.6				6,034,702
Operating cost and expenses			430,615				345,074			+	24.8				5,126,369
Operating profit		¥	76,300			¥	58,571			+	30.3			$	908,333
Consumer
Net sales:
External customers		¥	324,450			¥	314,066			+	3.3			$	3,862,500
Intersegment			323				431			-	25.1				3,845
Total			324,773				314,497			+	3.3				3,866,345
Operating cost and expenses			265,996				262,918			+	1.2				3,166,619
Operating profit		¥	58,777			¥	51,579			+	14.0			$	699,726
Industry and Others
Net sales:
External customers		¥	83,652			¥	58,998			+	41.8			$	995,857
Intersegment			26,122				24,364			+	7.2				310,976
Total			109,774				83,362			+	31.7				1,306,833
Operating cost and expenses			105,382				100,559			+	4.8				1,254,547
Operating profit (loss)		¥	4,392			¥	(17,197	)			-			$	52,286
Corporate and Eliminations
Net sales:
External customers		¥	-			¥	-				-			$	-
Intersegment			(28,311	)			(27,180	)			-				(337,035	)
Total			(28,311	)			(27,180	)			-				(337,035	)
Operating cost and expenses			6,734				5,784				-				80,167
Operating profit		¥	(35,045	)		¥	(32,964	)			-			$	(417,202	)
Consolidated
Net sales:
External customers		¥	913,151			¥	774,324			+	17.9			$	10,870,845
Intersegment			-				-				-				-
Total			913,151				774,324			+	17.9				10,870,845
Operating cost and expenses			808,727				714,335			+	13.2				9,627,702
Operating profit		¥	104,424			¥	59,989			+	74.1			$	1,243,143

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, 2010				September 30, 2009								September 30, 2010
Office
Net sales:
External customers		¥	1,431,626			¥	1,172,907			+	22.1			$	17,043,167
Intersegment			6,366				7,038			-	9.5				75,785
Total			1,437,992				1,179,945			+	21.9				17,118,952
Operating cost and expenses			1,205,821				1,031,163			+	16.9				14,355,012
Operating profit		¥	232,171			¥	148,782			+	56.0			$	2,763,940
Consumer
Net sales:
External customers		¥	977,741			¥	887,107			+	10.2			$	11,639,774
Intersegment			1,346				1,324			+	1.7				16,024
Total			979,087				888,431			+	10.2				11,655,798
Operating cost and expenses			806,044				780,082			+	3.3				9,595,762
Operating profit		¥	173,043			¥	108,349			+	59.7			$	2,060,036
Industry and Others
Net sales:
External customers		¥	229,668			¥	195,129			+	17.7			$	2,734,142
Intersegment			71,364				59,551			+	19.8				849,572
Total			301,032				254,680			+	18.2				3,583,714
Operating cost and expenses			305,019				295,676			+	3.2				3,631,178
Operating profit (loss)		¥	(3,987	)		¥	(40,996	)			-			$	(47,464	)
Corporate and Eliminations
Net sales:
External customers		¥	-			¥	-				-			$	-
Intersegment			(79,076	)			(67,913	)			-				(941,381	)
Total			(79,076	)			(67,913	)			-				(941,381	)
Operating cost and expenses			17,446				23,295				-				207,691
Operating profit		¥	(96,522	)		¥	(91,208	)			-			$	(1,149,072	)
Consolidated
Net sales:
External customers		¥	2,639,035			¥	2,255,143			+	17.0			$	31,417,083
Intersegment			-				-				-				-
Total			2,639,035				2,255,143			+	17.0				31,417,083
Operating cost and expenses			2,334,330				2,130,216			+	9.6				27,789,643
Operating profit		¥	304,705			¥	124,927			+	143.9			$	3,627,440