Its consolidated net profit for the six months to September came to 7.5 billion yen (69 million dollars), up from 2.5 billion yen in the same period in 2002, the Osaka-based company said.

Interim sales rose 17.8 percent from a year earlier to 1.23 trillion yen, with its overseas sales up 18.5 percent to 610 billion yen.

Pre-tax profit surged to 21.5 billion yen from 8.5 billion yen.

The profit gains were mainly due to strong sales of digital cameras, led by its new model 'Xacti' and camera-equipped mobile phones.

Brisk sales of batteries for use in mobile phones also contributed to the profit gain, said Sanyo, which has the world's largest share of lithium ion batteries.

But an unusually cool summer in Japan depressed domestic sales of air conditioners and other summer-season products, it said.

For the year to March 2004, Sanyo forecast a net profit of 25.5 billion yen, pre-tax profit of 59.0 billion yen on revenue of 2.45 trillion yen, unchanged from the previous forecast.

"The second half of the current fiscal year sees high hopes for a robust economy but with the impact of the yen's rapid appreciation gives no grounds for such optimism," Sanyo Co. Ltd. said.

SPACE.WIRE