Ailing retailer Daiei Inc. reported Friday it returned to profitability in its 2002 business year due to lower restructuring costs, which weighed heavily on its earnings in the previous term.

Daiei's core supermarket business, however, failed to meet its earnings target, forcing the firm to revise its three-year revival plan after only one year.

"We are aware of the criticism that we revised (the revival plan) after just starting it," said Daiei President Kunio Takagi during a news conference announcing earnings for the firm's business year that ended in February. "But we decided it was necessary given lower results and a severe market environment."