Sanyo Electric Co., which has been struggling to turn around its scandal-plagued business, swung back into profit in the business year through March for the first time in four years, the electronics maker said Thursday.

Sanyo recorded ¥28.7 billion in profit for the year that ended March 31, a reversal from the ¥45.36 billion loss racked up the previous year and a sign that recent restructuring efforts are paying off.

Demand was strong for digital cameras, rechargeable batteries, solar energy panels and air conditioners, said the Osaka-based manufacturer.

In recent years, Sanyo has shed unprofitable operations and slashed jobs as part of reforms to focus on its core battery and solar energy businesses.

Sanyo has been hammered by competition from cheaper Asian rivals. Its performance was also hurt by a 2004 earthquake near its chip-making plant.

It received a bailout from Goldman Sachs and other investors in 2006. The following year, Sanyo became embroiled in an accounting scandal over falsifying past earnings and reporting a profit when it was in the red. This led to a reshuffle of top management.

Sanyo's sales for the business year through March rose 7.2 percent from the previous year to ¥2.018 trillion, the company said.

"The results of business 2007 eclipsed the forecast in terms of profit, surging as much as 78.7 percent compared with last year and moving the balance sheet back into the black after four business years," President Seiichiro Sano said, referring to operating profit results, which measure how the company fared in its core businesses.

Sanyo is forecasting a 22 percent gain in profit for the year ending next March 31, although the company acknowledged soaring materials costs and a weaker dollar remain risks.

Sanyo said Thursday it expects ¥35 billion in profit and ¥2.020 trillion in sales for the business year to next March.

Sanyo shares dropped 4.9 percent to ¥273 Thursday on disappointment that forecasts weren't as optimistic as analysts expected. Sanyo's earnings were announced shortly before trading closed Thursday.