Soaring costs of raw materials and oil, lower economic confidence and a stronger Japanese Yen caused Canon?s quarterly net income to fall 13%, the firm said today.

Canon?s net income fell to ¥107,841 million in the second quarter of 2008, compared to a figure of ¥123,933m for the same three months the year before.

Sales for the period dropped 1.9%, compared to 2007.

Figures for the first half of 2008 show that net income dropped around 16% compared to the first six months of last year.

Though Canon notched up a 16% jump in the number of digital cameras sold for the six months to 30 June, in value terms sales rose by just 1.9%. Canon attributed this to ?dramatic appreciation of the Yen against the US dollar, along with fierce price competition?.

Picture: Canon’s EOS 40D digital SLR has helped boost sales. But a stronger Japanese Yen and ‘fierce price competition’ has hit the firm’s overall sales in value terms this year