Canon's Imaging Systems business has reported its third quarter sales fell by ¥26.5bn ($220m), compared to the same time last year. The company blamed a decline in worldwide demand for its interchangeable lens cameras 'due to market shrinkage,' with unit sales down 17% year-on-year, despite sales increases in Japan and Europe.

The company also made the third consecutive reduction to its sales forecast for its Imaging Systems division. It now expects 2015's camera sales to fall by 14.9% compared to the previous year, if you remove the effect of currency fluctuation. The company as a whole saw operating income increase, though, thanks to sales increases in its Office division.

It’s no surprise that compact camera sales volume also continued to decline, down 29% compared to last year, though Canon cites higher value-added models like the PowerShot G3 X as helping to improve profitability in the category. In its outlook, Canon sees this trend continuing. Canon attributes its profit increases in the third quarter to cost-cutting measures, 'highly profitable new products' and favorable currency exchange rates.