TOKYO (AFP) - Japanese electronics giant Toshiba said it returned to the black in the first half with 8.4 billion yen (79 million dollars) in net profit as high-tech device sales helped the bottom line.
In the six months to September, Toshiba Corp. reversed a net loss of 32.2 billion yen a year earlier, with pretax profit of 21.5 billion yen after a loss of 17.6 billion yen while revenues rose 6.7 percent to 2.78 trillion yen.
Toshiba upgraded its forecast for the full year to March 2005.
"The performance improvement in the liquid crystal display, semiconductor and personal computer businesses explains everything," senior vice-president Sadazumi Ryu told a news conference.
Upbeat semiconductor sales due to high demand for digital goods pushed its electronic device segment sales up 9.0 percent to 683.7 billion yen and more than doubled profits to 67.4 billion yen.
The digital products business saw sales climb 11 percent to 1.06 trillion yen, helped cellphones and optical-disk drives made in a joint venture with South Korean firm Samsung Electronics, but the division posted a 12.8 billion yen operating loss.
The personal computer unit of its digital products business saw its losses shrink to 7.2 billion yen in the first half, from 27.9 billion yen a year earlier.
"Improvement in the personal computer business is now taking place at a much faster-than-expected pace," Ryu said. "We now aim to break-even or post some (operating) profit in the year to March."
Toshiba currently aims to sell 5.5 million personal computers in the year to March 2005, up from 4.5 million a year earlier.
A record hot summer in Japan bolstered sales of air conditioners and other consumer goods, lifting its home appliances revenue five percent to 330 billion yen.
Toshiba raised its full-year profit forecast, citing a Japanese economy on an "upward trend", but warned of risks from higher oil prices and interest rates.
"Rising oil prices and a policy of credit restraint will make themselves felt in the United States, while there may be a reaction to overheating investment in China," the company said in a statement.
For the year to March 2005, Toshiba raised its forecast for a net profit to 50 billion yen from the 30 billion yen projected earlier, with pretax profit 130 billion yen from 110 billion yen, and sales at 5.87 trillion yen, up from 5.80 trillion yen.
10/29/2004 - 10:59 GMT - AFP