Canon, the Japanese consumer electronics group, on Monday reported a 26 per cent fall in third quarter operating profits and cuts its full year forecasts, in the latest sign that the strong yen is hurting Japanese exporters.

Citing “increased concern over the impact to the real economy” from financial turbulence, and “drastic fluctuations in currency exchange rates”, the world’s largest maker of digital cameras cut its full year operating profit forecast by 23 per cent. That would end Canon’s nine-year run of consecutive growth in profits.