MRO Magazine

Mitsubishi Electric Announces Consolidated and Non-consolidated Financial Results for Fiscal 2015


April 28, 2015
By Business Wire News

TOKYO

Mitsubishi Electric Corporation (TOKYO:6503) announced today its consolidated and non-consolidated financial results for fiscal 2015 (April 1, 2014- March 31, 2015).

The full document on Mitsubishi Electric’s financial results can be accessed at the following link: www.MitsubishiElectric.com/news

 

Consolidated Financial Results

Net sales:     4,323.0     billion yen     (7% increase from the previous fiscal year)
Operating income: 317.6 billion yen (35% increase from the previous fiscal year)
Income before income taxes: 322.9 billion yen (30% increase from the previous fiscal year)

Net income attributable to
Mitsubishi Electric Corp.:

234.6 billion yen (53% increase from the previous fiscal year)
 

Non-consolidated Financial Results

Net sales:     2,675.6     billion yen     (8% increase from the previous fiscal year)
Operating income: 150.6 billion yen (52% increase from the previous fiscal year)
Ordinary profit: 171.4 billion yen (34% increase from the previous fiscal year)
Net income: 135.2 billion yen (35% increase from the previous fiscal year)
 

The business environment during the fiscal year ended March 31, 2015 in general experienced a gradual upward trend, with buoyant economic expansion in the U.S. and economic recovery in Europe having a positive effect, despite Japan’s economy remaining in a state of weak recovery centered around consumption and despite the economic slowdown in China and some emerging markets. In addition, the weakening of the yen advanced against the U.S. dollar, while the yen became stronger against the euro.

Under these circumstances, the Mitsubishi Electric Group has been working even harder than before to promote growth strategies rooted in its advantages, while continuously implementing initiatives to strengthen its competitiveness and business structure.

As a result, Mitsubishi Electric has recorded consolidated net sales of 4,323.0 billion yen for fiscal 2015, an increase of 7% compared to the previous fiscal year with increased sales in all segments. Consolidated operating income increased by 35% compared to the previous fiscal year to 317.6 billion yen, due to increased profits in the Industrial Automation Systems, Information and Communication Systems, Electronic Devices and Home Appliances segments.

CURRENT FORECAST FOR FISCAL 2016
Despite global business conditions facing concerns of a further economic slowdown in China, continued economic stagnation in some emerging markets and slow recovery primarily in consumption and capital expenditures in the Japanese market, a continued gradual trend of economic expansion is expected mainly in the U.S. and Europe.

Under these circumstances, the Mitsubishi Electric Group aims to achieve its management targets by uplifting its business performance and financial standings through initiatives such as promoting more strongly its global operations in its environment and energy related business and its social infrastructure systems related business, continuously increasing and strengthening profitability in each business and continuously implementing various Group-wide business improvement measures.

 

Current forecast for fiscal 2016: consolidated

Net sales     4,370.0     billion yen     (1% increase from fiscal 2015)
Operating income 320.0 billion yen (1% increase from fiscal 2015)
Income before income taxes 320.0 billion yen (1% decrease from fiscal 2015)

Net income attributable to
Mitsubishi Electric Corp.

220.0 billion yen (6% decrease from fiscal 2015)
 

Cautionary Statement
The Mitsubishi Electric Group (hereafter “the Group”) is involved in development, manufacture and sales in a wide range of fields including Energy and Electric Systems, Industrial Automation Systems, Information and Communication Systems, Electronic Devices and Home Appliances, and these operations extend globally, not only inside Japan, but also in North America, Europe, Asia and other regions. While the statements herein are based on certain assumptions and premises that the Company trusts and considers to be reasonable under the circumstances on the date of announcement, actual operating results are subject to change due to any of the factors as contemplated hereunder and/or any additional factor unforeseeable as of the date of this announcement. Such factors materially affecting the expectations expressed herein shall include but are not limited to the following:

(1)   Important trends
The Group’s operations may be affected by trends in the global economy, social conditions, laws, tax codes and regulations.
(2) Foreign currency exchange rates
Fluctuations in foreign currency markets may affect the Group’s sales of exported products and purchases of imported materials that are denominated in U.S. dollars or euros, as well as its Asian production bases’ sales of exported products and purchases of imported materials that are denominated in foreign currencies.
(3) Stock markets
A fall in stock market prices may cause Mitsubishi Electric to record devaluation losses on marketable securities, or cause an increase in retirement benefit obligations in accordance with a decline in the fair value of pension assets.
(4) Supply/demand balance for products and procurement conditions for materials and components
A decline in prices and shipments due to changes in the supply/demand balance, as well as an increase in material prices due to a worsening of material and component procurement conditions, may adversely affect the Group’s performance.
(5) Fund raising
An increase in interest rates, the yen interest rate in particular, would increase the Group’s interest expenses.
(6) Significant patent matters
Important patent filings, licensing, copyrights and patent-related disputes may adversely affect related businesses.
(7) Environmental legislation or relevant issues
The Group may incur losses or expenses owing to changes in environmental legislation or the occurrence of environmental issues. Such changes in legislation or the occurrence of environmental issues may also impact manufacturing and all corporate activities of the Group.
(8) Flaws or defects in products or services
The Group may incur losses or expenses resulting out of flaws or defects in products or services, and the lowered reputation of the quality of all our products and services may affect the entire Group.
(9) Litigation and other legal proceedings
The Group’s operations may be affected by lawsuits or other legal proceedings against Mitsubishi Electric, its subsidiaries and/or equity-method affiliated companies.
(10) Disruptive changes
Disruptive changes in technology, development of products using new technology, timing of production and market introduction may adversely affect the Group’s performance.
(11) Business restructuring
The Group may record losses due to restructuring measures.
(12) Information security
The performance of the Group may be affected by computer virus infections, unauthorized access and other unpredictable incidents that lead to the loss or leakage of personal information held by the Group or confidential information regarding the Group’s business such as its technology, sales and other operations.
(13) Natural disasters
The Group’s operations, particularly manufacturing activities, may be affected by the occurrence of earthquakes, typhoons, tsunami, fires and other large-scale disasters.
(14) Other significant factors
The Group’s operations may be affected by the outbreak of social or political upheaval due to terrorism, war, pandemic by new strains of influenza and other diseases, or other factors.
 

About Mitsubishi Electric Corporation
With over 90 years of experience in providing reliable, high-quality products, Mitsubishi Electric Corporation (TOKYO:6503) is a recognized world leader in the manufacture, marketing and sales of electrical and electronic equipment used in information processing and communications, space development and satellite communications, consumer electronics, industrial technology, energy, transportation and building equipment. Embracing the spirit of its corporate statement, Changes for the Better, and its environmental statement, Eco Changes, Mitsubishi Electric endeavors to be a global, leading green company, enriching society with technology. The company recorded consolidated group sales of 4,323.0 billion yen (US$ 36.0 billion*) in the fiscal year ended March 31, 2015. For more information visit:
http://www.MitsubishiElectric.com
*At an exchange rate of 120 yen to the US dollar, the rate given by the Tokyo Foreign Exchange Market on March 31, 2015

Mitsubishi Electric Corporation
Investor Relations Inquiries
Investor Relations Group
Corporate Finance Division
Tel: +81-3-3218-2391
Cad.Irg@rk.MitsubishiElectric.co.jp
or
Media Inquiries
Yurika Fujimoto, +81-3-3218-3380
Public Relations Division
prd.gnews@nk.MitsubishiElectric.co.jp
http://www.MitsubishiElectric.com/news/