MRO Magazine

Mitsubishi Electric Announces Consolidated Financial Results for the First Quarter of Fiscal 2016


July 30, 2015
By Business Wire News

TOKYO

Mitsubishi Electric Corporation (TOKYO: 6503) announced today its consolidated financial results for the first quarter ending June 30, 2015, of the current fiscal year ending March 31, 2016 (fiscal 2016).

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:   988.4   billion yen   (9% increase from the same quarter last year)
Operating income: 54.6 billion yen (8% decrease from the same quarter last year)
Income before income taxes: 67.1 billion yen (1% decrease from the same quarter last year)
Net income attributable to Mitsubishi Electric Corp.: 46.3 billion yen (8% increase from the same quarter last year)
 

The business environment in the first quarter (from April through June 2015) of the fiscal year 2016 experienced a continued trend of buoyancy in the U.S. and gradual economic recovery in Europe, in addition to the Japanese market gradually recovering in capital expenditures with from the impact of the rise in consumption taxes receding. Meanwhile, China and other East Asian markets experienced a continued slowdown, while some emerging markets saw higher levels of economic stagnation. In addition, the weakening of the yen advanced against the U.S. dollar.

Under these circumstances, consolidated net sales in the first quarter increased by 9% compared to the same period of the previous fiscal year to 988.4 billion yen, owing to such factors as increased sales in the Energy and Electric Systems, Industrial Automation Systems, Information and Communication Systems, Electronic Devices and Home Appliances segments. Consolidated operating income decreased by 8% compared to the same period of the previous fiscal year to 54.6 billion yen, due to lower profits in the Energy and Electric Systems and Home Appliances segments.

Forecast for Fiscal 2016

The current consolidated earnings forecast for the first half of fiscal 2016, ending September 30, 2015, and for fiscal 2016, ending March 31, 2016, is unchanged from the announcement on April 28, 2015 as stated below.

 

First Half of Fiscal 2016 Consolidated Earnings Forecast

Net sales   2,060.0   billion yen   (4% increase from the same period last year)
Operating income 140.0   billion yen   (15% increase from the same period last year)
Income before income taxes 148.0   billion yen   (1% increase from the same period last year)
Net income attributable to Mitsubishi Electric Corp.   104.0   billion yen   (6% increase from the same period last year)
 

Fiscal 2016 Consolidated Earnings Forecast

Net sales   4,370.0   billion yen   (1% increase from the previous fiscal year)
Operating income 320.0   billion yen   (1% increase from the previous fiscal year)
Income before income taxes 320.0   billion yen   (1% decrease from the previous fiscal year)
Net income attributable to Mitsubishi Electric Corp.   220.0   billion yen   (6% decrease from the previous fiscal year)
   

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

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