Nikon's group net profit came to 2.05 billion yen (18.8 million dollars) for the six months to September, reversing a net loss of 3.48 billion yen a year earlier.

Sales rose 12 percent to 240.9 billion yen on strong sales of digital cameras and devices for making liquid crystal displays.

Nikon suffered a recurring loss of 515 million yen due to higher operating costs, compared with a recurring profit of 1.7 billion yen.

But the company managed to report net profit after it generated extra profit from sales of fixed assets and its securities holdings, it said.

For the year to March 2004, Nikon forecast a net profit of 5.5 billion yen, a recurring profit of 3.0 billion yen and sales of 540 billion yen.

"We will continue expanding camera businesses, led by sales of digital cameras," the company said.

SPACE.WIRE