Canon,the world’s biggest digital camera manufacturer, has just reported an 81% decline in quarterly profits, blaming the strong yen and slowing demand for cameras and office equipment. “A substantial recovery in the economy is unlikely in 2009. Our operating environment will be even harder this year than it was last year,” commented Canon’s Managing Director Masahiro Osawa. Digital camera sales are expected to fall by 7% from a year earlier to 23.9 million units in 2009. Canon now predicts that its operating profit will fall 68% to 160 billion yen in 2009, the lowest in the last 14 years. Canon is aiming to cut costs by 70 billion yen in a bid to cope with the current economic crisis.