TOKYO--(BUSINESS WIRE)--Mitsubishi Electric Corporation (TOKYO:6503) announced today its financial results for the first quarter ending June 30, 2011, of the current fiscal year ending March 31, 2012 (fiscal 2012).
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Consolidated Financial Results |
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| Net sales: | 813.6 billion yen | (4% increase from the same quarter last year) | ||
| Operating income: | 52.2 billion yen | (1% increase from the same quarter last year) | ||
| Income before income taxes: | 49.2 billion yen | (5% increase from the same quarter last year) | ||
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Net income attributable to |
27.1 billion yen |
(4% increase from the same quarter last year) |
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Management conditions during the first quarter of fiscal 2012 experienced a trend of recovery owing to ongoing buoyancy in demand for capital expenditures mainly in Asia, despite a sharp drop in domestic industrial production due to the Great East Japan Earthquake and Japanese yen appreciating against U.S. dollars.
Under these circumstances, first quarter consolidated net sales rose by 4% compared to the same period of the previous fiscal year to 813.6 billion yen, owing to increased revenue from the Energy and Electric Systems, Industrial Automation Systems, Electronic Devices and Home Appliances segments, and other factors.
Consolidated operating income increased by 1% compared to the same period of the previous fiscal year to 52.2 billion yen due to higher profits from the Industrial Automation Systems, Electronic Devices and Home Appliances segments, and other factors.
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Consolidated Financial Results by Business Segment |
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Energy and Electric Systems |
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| Total sales: | 194.2 billion yen | (1% increase from the same quarter last year) | ||
| Operating income: | 14.5 billion yen | (0.9 billion yen decrease from the same quarter last year) | ||
The social infrastructure systems business saw an increase in orders compared to the same period of the previous fiscal year owing to growth in the Japanese domestic power generation business, while experiencing decreased sales from the same period of the previous fiscal year due to a decline in the rolling stock equipment business in Japan.
The building systems business experienced increases in both orders and sales compared to the same period of the previous fiscal year, owing to increased demand for elevators and escalators in China and the ASEAN markets, as well as sales recorded for large-scale projects in China and the Middle East.
As a result, total sales for this segment increased by 1% from the same period of the previous fiscal year. Operating income decreased compared to the same period of the previous fiscal year by 0.9 billion yen due primarily to a shift in sales components.
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Industrial Automation Systems |
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| Total sales: | 233.9 billion yen | (9% increase from the same quarter last year) | ||
| Operating income: | 27.9 billion yen | (0.9 billion yen increase from the same quarter last year) | ||
The factory automation systems business saw increases in both orders and sales from the same period of the previous fiscal year owing to growth in demand in the Asian market, including industrial machinery-related investments in China and flat panel display and semiconductor-related investments in Korea and Taiwan.
The automotive equipment business saw decreases in both orders and sales from the same period of the previous fiscal year with Japanese automotive manufacturers experiencing decreases in production volume due to impacts from the Great East Japan Earthquake, despite expansions in emerging markets including China and India, as well as a recovery in the North American market.
As a result, total sales for this segment increased by 9% from the same period of the previous fiscal year. Operating income increased by 0.9 billion yen compared to the same period of the previous fiscal year mainly due to an increase in sales.
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Information and Communication Systems |
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| Total sales: | 86.2 billion yen | (5% decrease from the same quarter last year) | ||
| Operating income (loss): | (0.3 billion yen) | (2.0 billion yen decline from the same quarter last year) | ||
The telecommunications equipment business saw decreases in both orders and sales compared to the same period of the previous fiscal year due to decreases in demand for communications infrastructures.
The information systems and service business saw no changes in sales from the same period of the previous fiscal year despite increases mainly in the network and system operations business.
The electronic systems business saw a decrease in orders compared to the same period of the previous fiscal year due to a decrease in large orders for the space systems business, while sales were unchanged from the same period of the previous fiscal year.
As a result, total sales for this segment showed a decrease of 5% compared to the same period of the previous fiscal year. Operating income declined by 2.0 billion yen compared to the same period of the previous fiscal year due primarily to decreased sales.
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Electronic Devices |
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| Total sales: | 50.0 billion yen | (20% increase from the same quarter last year) | ||
| Operating income: | 2.4 billion yen | (1.7 billion yen increase from the same quarter last year) | ||
The semiconductor business saw increases in both orders and sales from the same period of the previous fiscal year owing to increased demand for power modules used in industrial, consumer and railway applications.
The LCD module business saw increases in both orders and sales from the same period of the previous fiscal year due to increased demand for industrial and automotive-use products.
As a result, total sales for the segment increased by 20% compared to the same period of the previous fiscal year. Operating income increased by 1.7 billion yen compared to the same period of the previous fiscal year due primarily to an increase in sales.
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Home Appliances |
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| Total sales: | 232.3 billion yen | (8% increase from the same quarter last year) | ||
| Operating income: | 14.7 billion yen | (0.5 billion yen increase from the same quarter last year) | ||
The home appliances business saw an increase in sales by 8% compared to the same period of the previous fiscal year due primarily to increases in air conditioners for markets inside and outside Japan, LCD televisions and Blu-ray recorders in Japan, which experienced a last-minute surge before the termination of analog broadcasting, as well as photovoltaic systems for the Japanese market owing mainly to ongoing benefits from government subsidies.
Operating income increased by 0.5 billion yen from the same period of the previous fiscal year primarily due to increased sales.
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Others |
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| Total sales: | 138.5 billion yen | (3% increase from the same quarter last year) | ||
| Operating income: | 1.1 billion yen | (0.6 billion yen increase from the same quarter last year) | ||
Sales increased by 3% compared to the same period of the previous fiscal year mainly in affiliated companies involved in engineering, material procurement and logistics. Operating income showed an increase by 0.6 billion yen compared to the same period of the previous fiscal year primarily due to increased sales.
Financial Standing
The
company's total assets for the fiscal quarter decreased from the end of
the previous fiscal year by 88.5 billion yen to 3,244.1 billion yen.
This was mainly due to credit collection resulting in a decrease of
trade receivables by 119.2 billion yen and also to cash and cash
equivalents decreasing by 47.4 billion yen, while inventories increased
by 86.0 billion yen mainly due to variation of the balance of
work-in-process as recorded in commensurate with progress in job orders
under pertinent contracts.
The balance of outstanding debt and corporate bonds fell by 7.2 billion yen from the balance as of the end of the previous fiscal year to 477.1 billion yen, while the ratio of interest bearing debt to total assets was 14.7%, a 0.2-point increase compared to the end of the previous fiscal year. Trade payables decreased by 62.2 billion yen, and retirement and severance benefits increased by 6.8 billion yen.
Mitsubishi Electric Corporation shareholders' equity increased by 1.3 billion yen compared to the end of the previous fiscal year to 1,051.7 billion yen. Shareholders' equity ratio showed a 0.9-point increase compared to the end of the previous fiscal year to 32.4%. Retained earnings increased by 12.1 billion yen due to a total consolidated net income attributable to Mitsubishi Electric Corporation of 27.1 billion yen and dividend payment of 15.0 billion yen, while accumulated other comprehensive income decreased by 8.3 billion yen amidst strong yen and other factors.
Operating cash flow for this quarter decreased by 67.4 billion yen compared to the same period of the previous fiscal year to 19.2 billion yen (cash in). Investment cash flow decreased by 23.3 billion yen compared to the same period of the previous fiscal year to 31.8 billion yen (cash out), resulting from a decrease mainly in investment on securities. As a result, free cash flow totaled 12.5 billion yen (cash out). Financial cash flow was 33.8 billion yen (cash out) due to payment of dividends, repayment of loans and other factors.
Forecast for Fiscal 2012
Despite
impacts from the Great East Japan Earthquake, Mitsubishi Electric's
financial performance in the first half of fiscal 2012, ending September
30, 2011, is expected to exceed its previous forecast in the Industrial
Automation Systems segment, which is experiencing ongoing buoyancy in
demand for capital expenditures mainly in Asia, and the Home Appliances
segment, which is enjoying strong sales mainly in air conditioners for
markets both inside and outside Japan. The company has modified the
consolidated earnings forecast for the first half of fiscal 2012,
announced on June 20, 2011, as stated below. The forecast for fiscal
2012, ending March 31, 2012, has also been raised by the same amount
revised for the first half of fiscal 2012.
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First Half of Fiscal 2012 Consolidated Earnings Forecast |
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| Previous forecast | Revised forecast | |||||
| Net sales: | 1,750.0 billion yen | 1,770.0 billion yen | (3% increase from the same period last year) | |||
| Operating income: | 90.0 billion yen | 100.0 billion yen | (11% decrease from the same period last year) | |||
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Income before |
70.0 billion yen | 80.0 billion yen | (30% decrease from the same period last year) | |||
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Net income |
45.0 billion yen | 55.0 billion yen | (23% decrease from the same period last year) | |||
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Fiscal 2012 Consolidated Earnings Forecast |
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| Previous forecast | Revised forecast | |||||
| Net sales: | 3,770.0 billion yen | 3,790.0 billion yen | (4% increase from the previous fiscal year) | |||
| Operating income: | 230.0 billion yen | 240.0 billion yen | (3% increase from the previous fiscal year) | |||
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Income before |
200.0 billion yen | 210.0 billion yen | (Unchanged from the previous fiscal year) | |||
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Net income |
125.0 billion yen | 135.0 billion yen | (8% increase from the previous fiscal year) | |||
Cautionary Statement
The
expectation of operating results herein and any associated statement to
be made orally with respect to the Company's current plans, estimates,
strategies and beliefs and any other statements that are not historical
facts are forward-looking statements. Words such as "expects",
"anticipates", "plans", "believes", "scheduled", "estimated", "targeted"
along with any variations of these words and similar expressions are
intended to identify forward-looking statements which include but are
not limited to projections of revenues, earnings, performance and
production. While the statements herein are based on certain assumptions
and premises that the Company trusts and considers to be reasonable
under the circumstances to the date of announcement, you are requested
to kindly take note that 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 Mitsubishi Electric 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 Mitsubishi Electric'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 Mitsubishi Electric Group's performance. | ||
| (5) | Fund raising | |
| An increase in interest rates, the yen interest rate in particular, would increase Mitsubishi Electric'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 | |
| We 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 Mitsubishi Electric Group. | ||
| (8) | Flaws or defects in products or services | |
| We 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 Mitsubishi Electric group. | ||
| (9) | Litigation and other legal proceedings | |
| The Mitsubishi Electric 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 Mitsubishi Electric Group's performance. | ||
| (11) | Business restructuring | |
| The Mitsubishi Electric Group may record losses due to restructuring measures. | ||
| (12) | Natural disasters | |
| The Mitsubishi Electric Group's operations, particularly manufacturing activities, may be affected by the occurrence of earthquakes, typhoons, tsunami, fires and other large-scale disasters. | ||
| (13) | Other significant factors | |
| The Mitsubishi Electric 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. | ||
Notes
1. Change of status in
material affiliates in this quarterly period: none
About Mitsubishi Electric
With
90 years of experience in providing reliable, high-quality products to
both corporate clients and general consumers all over the world,
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.
The company recorded consolidated group sales of 3,645.3 billion yen
(US$ 43.9 billion*) in the fiscal year ended March 31, 2011. For more
information visit http://www.MitsubishiElectric.com
*At an exchange rate of 83 yen to the US dollar, the rate given by the Tokyo Foreign Exchange Market on March 31, 2011