Canon today released their 3rd quarter earnings report, which covers sales from July through September 30. Canon's total net sales for the quarter were up a healthy 12.5% to 988 billion yen, or $8.73 billion. Strong sales of digital cameras and laser printers were largely responsible for the boost in profits. Sales of digital SLR cameras, specifically, were up dramatically due to a steady increase in demand over the quarter. Various cost-reduction efforts and depreciation of the yen also helped improve Canon's profit margin.

Among digital SLR cameras, Canon's new EOS Digital Rebel XTi sold very well despite growing competition by newcomers to the market, such as Sony and Panasonic. Sales of Canon's interchangeable lens also increased significantly, keeping pace with new SLR camera sales. Canon's overall operating profit in the camera market rose by 38.1% to 67.4 billion yen or $960 million.

In anticipation of a strong seasonal market, Canon expects a net profit of 440 billion yen and sales of 4.14 trillion yen at the end of the year, December 2006. The complete earning report can be found here: http://www.canon.com/ir/results/2006/rslt2006q3e.pdf