Toshiba is back in black for the year, but the company's operating profits dipped in the second half due to the chip market slump.

Operating profits for the six months to 31 March were down 4.3 per cent to 126 billion yen ($1.02 billion) on fairly flat sales.

The company posted net profits of 96.17 billion yen ($780 million) for the full year to March 31. The year before it made a loss of 32.9 billion yen ($265.41 million). The jump is down to Toshiba taking 110 billion yen ($890 million) charge in the six months to March 2000 to settle a U.S. class-action lawsuit that alleged the company sold defective laptop PCs.

Sales for the year hit 5.95 trillion yen ($48 billion).

Laptops, mobile phones and other digital devices earned 6.3 billion yen ($50.84 million) in the six months to 31 March, down from 30.7 billion yen ($247.74 million) a year earlier.

For the financial year, which started on 1 April, Toshiba predicts net profits will drop to 60 billion yen ($480 million), and operating profits will fall 14 per cent to 200 billion yen ($1.61 billion). ®