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UPDATE 1-Mabuchi posts solid '02 results; eyes share buy-back

(Recasts, adds details, share price)

TOKYO, Feb 18 (Reuters) - Japan's Mabuchi Motor Co Ltd , the world's biggest micro-motor maker, on Tuesday posted a solid 10.7 percent rise in 2002 group net profit, driven by strong demand for its motors used in DVD and CD players.

The company, which specialises in tiny motors used in everything from consumer and car electronics to precision machinery, also said it planned to buy back up to 25 billion yen ($207.8 million), or 4.25 percent, of its outstanding shares.

The buyback plan has to be approved by shareholders at a March 28 meeting.

Mabuchi posted a group net profit of 18.03 billion yen for 2002, up 10.7 percent from the previous year. Sales also rose 10.7 percent year-on-year to 116.36 billion yen.

Mabuchi, which commands more than 50 percent of the global market for small motors, saw its results boosted by strong demand for motors used in DVD and CD players, particularly in the United States.

The 2002 results were also a rebound from the previous year when the group's net profits were hurt by greater losses on its shareholdings and other one-off charges.

The company's group operating profit rose 31.9 percent year-on-year in 2002 to 29.12 billion yen.

But Mabuchi said conditions in 2003 would be tougher.

The company said it expected group net profit to fall 5.7 percent year-on-year to 17 billion yen, while sales were forecast to fall 7.2 percent to 108 billion yen.

"With falling global share prices and deflationary pressures, particularly in Japan, likely to continue...there are many points in which it looks like it will be a tough environment," Mabuchi said in a statement.

Mabuchi's shares were flat at 10,030 yen at 0545 GMT, while the Nikkei average was down 0.62 percent.

Mabuchi, which has shifted the bulk of its manufacturing operations to China, is popular with foreign investors, who owned one-fourth of its shares as of June last year. It is considered a defensive stock among Japan's high-tech and electronics shares. ($1=120.32 yen)