The company forecast even better earnings going forwards helped by the popularity of digital cameras and DVD players but warned that the components industry as a whole would fail to enjoy strong growth.

Net profit at TDK Corp. in the recently ended financial year came to 12.0 billion yen (100 million dollars), reversing the year earlier loss of 25.8 billion yen.

Its pre-tax profit bounced back to 18.1 billion yen from a loss of 43.7 billion yen, while revenue grew 6.7 percent to 608.9 billion yen.

"TDK recorded higher sales on the back of ... an upturn in demand for electronic components, which is being fueled by the digitalisation of audio and visual equipment, and the increasing use of electronics in automotive applications," the firm said in a statement.

Sales in the United States, however, fell 3.1 percent over the period to 106.1 billion yen, while those in Europe declined 1.1 percent to 78.7 billion yen.

In contrast, revenue jumped 19.4 percent in Asia, excluding Japan, to 258.6 billion yen thanks to higher sales of recording and electronic devices.

The yen rose 2.4 percent against the dollar from the year before, cutting sales by 2.8 billion yen.

TDK expects net profit to surge 149.6 percent to 30 billion yen this year to March 2004, with pre-tax profit seen soaring 132.3 percent to 42 billion yen, on sales of 635 billion yen -- a 4.3 percent increase.

Sales of electronic components for such products as DVD players and digital cameras "is expected to remain firm," the company said.

"However ... TDK does not expect to see sharp growth in demand for electronic components generally," it warned.

SPACE.WIRE