Net profit dropped to 23.80 billion yen (202 million dollars) in the fiscal first half compared with a year earlier, the world's number two photo film maker said in a statement.

Fijifilm Holdings, which changed its name from Fuji Photo Film on October 1, said its operating income slumped by 15.4 percent to 50.78 billion yen on revenue of 1.35 trillion yen, up 3.7 percent from the previous year.

Fujifilm, the umbrella group for Fujifilm and Fuji Xerox, said restructuring costs of 42 billion yen had a strong impact on its operating income.

But revenues rose due to increase in sales of flat panel display materials, medical products and services, it said.

The company left unchanged its full-year forecast of a net profit of 38 billion yen on revenue of 2.74 trillion yen.

In January, the company said it would slash 5,000 jobs worldwide in its film and camera business by September 2006 and shift production of digital cameras to China as it weathers tough competition.

Competitor Konica Minolta has decided to stop making all cameras and camera film to focus on more profitable optics and medical imaging activities.

And Nikon, another iconic Japanese camera maker, is ending production of nearly all film cameras to focus on digital technology.

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