TIDMMEL
RNS Number : 8128N
Mitsubishi Electric Corporation
31 October 2016
FOR IMMEDIATE RELEASE No. 3065
Investor Relations Inquiries Media Inquiries
Investor Relations Group, Public Relations Division
Corporate Finance Division
Mitsubishi Electric Corporation Mitsubishi Electric Corporation
Cad.Irg@rk.MitsubishiElectric.co.jp prd.gnews@nk.MitsubishiElectric.co.jp
www.MitsubishiElectric.com/news/
Mitsubishi Electric Announces Consolidated Financial Results for
the First Half and Second Quarter of Fiscal 2017
TOKYO, October 31, 2016 - Mitsubishi Electric Corporation
(TOKYO: 6503) announced today its financial results for the first
half and second quarter, ended September 30, 2016, of the current
fiscal year ending March 31, 2017 (fiscal 2017).
1. Consolidated Half-year Results (April 1, 2016 - September 30,
2016)
Net sales: 1,972.3 billion (4% decrease from the
yen same period last year)
Operating income: 121.7 billion (4% decrease from the
yen same period last year)
Income before 123.7 billion (7% decrease from the
income taxes: yen same period last year)
Net income attributable 88.3 billion (5% decrease from the
to Mitsubishi yen same period last year)
Electric Corp.:
The business environment in the first half of fiscal 2017, from
April through September 2016, experienced a continuing gradual
slowdown in China and weak consumption in Japan, while the U.S.
economy showed strong signs of expansion and European economy
continued to recover gradually. In addition, the yen became
stronger against foreign currencies compared to the same period of
the previous year.
Under these circumstances, consolidated net sales in the first
half of fiscal 2017 decreased by 4% compared to the same period of
the previous fiscal year to 1,972.3 billion yen, owing to factors
such as decreased sales in the Industrial Automation Systems,
Electronic Devices and Information and Communication Systems
segments. Consolidated operating income decreased by 4% compared to
the same period of the previous fiscal year to 121.7 billion yen,
due to decreased profits in the Industrial Automation Systems and
Electronic Devices segments.
Consolidated Financial Results by Business Segment (First Half,
Fiscal 2017)
Energy and Electric Systems
Total sales: 525.4 billion (unchanged from the same
yen period last year)
Operating 9.1 billion (5.4 billion yen increase
income: yen from the same period last
year)
The social infrastructure systems business saw a decrease in
orders compared to the same period of the previous fiscal year due
primarily to a decrease in the transportation systems business
outside Japan. Sales, meanwhile, increased compared to the same
period of the previous fiscal year due mainly to increases in the
power systems business and in the transportation systems business
in Japan.
The building systems business experienced decreases in both
orders and sales compared to the same period of the previous fiscal
year, due primarily to negative influences caused by the stronger
yen, despite the growth in the renewal business in Japan, as well
as the installation business of new elevators and escalators
outside Japan.
As a result, total sales for this segment remained substantially
unchanged from the same period of the previous fiscal year.
Operating income increased by 5.4 billion yen from the same period
of the previous fiscal year due primarily to a shift in project
portfolios.
Industrial Automation Systems
Total sales: 617.6 billion (7% decrease from the same
yen period last year)
Operating 62.1 billion (21.8 billion yen decrease
income: yen from the same period last
year)
The factory automation systems business saw an increase in
orders from the same period of the previous fiscal year mainly due
to growth in capital expenditures in the fields of smartphones and
electrical automotives in China, while sales experienced a decrease
from the same period of the previous fiscal year due to decreased
capital expenditures of photovoltaic systems in Japan and the
negative influences caused by the stronger yen.
The automotive equipment business saw decreases in both orders
and sales from the same period of the previous fiscal year due
primarily to stagnation in car sales in Japan and the negative
influence of the stronger yen, despite growth in car sales mainly
in Europe.
As a result, total sales for this segment decreased by 7% from
the same period of the previous fiscal year. Operating income
decreased by 21.8 billion yen from the same period of the previous
fiscal year due primarily to a decrease in sales.
Information and Communication Systems
Total sales: 198.2 billion (12% decrease from the same
yen period last year)
Operating 3.8 billion (7.6 billion yen improvement
income: yen from the same period last
year, turning into profit)
The telecommunications equipment business saw decreases in both
orders and sales compared to the same period of the previous fiscal
year due primarily to the sellout of an affiliated company in the
beginning of the fiscal year and decreased sales of communications
infrastructure equipment.
The information systems and service business saw a decrease in
sales compared to the same period of the previous fiscal year,
owing to a decrease in the IT infrastructure service business.
The electronic systems business saw a decrease in orders
compared to the same period of the previous fiscal year due to a
shift in the portfolio of large-scale projects in the space
business, while sales experienced an increase compared to the same
period of the previous fiscal year due primarily to the progress
with large-scale projects in the defense systems business.
As a result, total sales for this segment decreased by 12%
compared to the same period of the previous fiscal year. Operating
income improved by 7.6 billion yen from the same period of the
previous fiscal year, turning into profit, due primarily to a shift
in project portfolios.
Electronic Devices
Total sales: 86.5 billion (30% decrease from the same
yen period last year)
Operating 1.7 billion (14.5 billion yen decrease
income: yen from the same period last
year)
The electronic devices business saw an increase in orders from
the same period of the previous fiscal year due to an increase in
optical communication devices, while sales decreased by 30%
compared to the same period of the previous fiscal year due to a
decrease in demand for power modules, along with the negative
influences of the 2016 Kumamoto earthquakes and the stronger
yen.
As a result, operating income decreased by 14.5 billion yen
compared to the same period of the previous fiscal year due
primarily to a decrease in sales.
Home Appliances
Total sales: 519.3 billion (2% increase from the same
yen period last year)
Operating 48.6 billion (15.4 billion yen increase
income: yen from the same period last
year)
The home appliances business saw an increase in sales of 2%
compared to the same period of the previous fiscal year due to
increases in sales of air conditioners in the European and North
American markets and sales of residential and industrial air
conditioners in Japan, despite negative influences caused by the
stronger yen.
Operating income increased by 15.4 billion yen compared to the
same period of the previous fiscal year largely due to an increase
in sales and the improvement in profitability of air conditioners
outside Japan.
Others
Total sales: 336.7 billion (1% decrease from the same
yen period last year)
Operating 9.3 billion (2.0 billion yen increase
income: yen from the same period last
year)
Sales decreased by 1% compared to the same period of the
previous fiscal year mainly due to decreases in sales among
affiliated companies involved in materials procurement.
Operating income increased by 2.0 billion yen from the same
period of the previous fiscal year due primarily to cost
reductions.
2. Consolidated Second-quarter Results (July 1, 2016 - September
30, 2016)
Net sales: 1,045.2 billion (3% decrease from the same
yen period last year)
Operating income: 62.0 billion (14% decrease from the
yen same period last year)
Income before 62.7 billion (5% decrease from the same
income taxes: yen period last year)
Net income attributable 45.4 billion (3% decrease from the same
to Mitsubishi yen period last year)
Electric Corp.:
Consolidated net sales for this quarter, from July through
September 2016, was 1,045.2 billion yen, a 3% decrease from the
same period of the previous fiscal year, due primarily to decreased
sales in the Industrial Automation Systems, Electronic Devices and
Information and Communication Systems segments.
Consolidated operating income was 62.0 billion yen, a decrease
of 14% from the same period of the previous fiscal year, with
decreased profits in the Industrial Automation Systems, Energy and
Electric Systems, and Electronic Devices segments.
Consolidated Financial Results by Business Segment (Second
Quarter, Fiscal 2017)
Energy and Electric Systems
Total sales: 287.4 billion (Unchanged from the same
yen period last year)
Operating 5.2 billion (5.1 billion yen decrease
income: yen from the same period last
year)
The social infrastructure systems business saw increases in both
orders and sales compared to the same period of the previous fiscal
year mainly due to increases in the power systems business and the
transportation systems business in Japan, despite a decrease in
sales of the transportation systems business outside Japan.
The building systems business experienced decreases in both
orders and sales compared to the same period of the previous fiscal
year, owing to negative influences caused by the stronger yen,
despite the growth in the renewal business in Japan and the
installation business of new elevators and escalators outside
Japan.
As a result, total sales for this segment were unchanged from
the same period of the previous fiscal year. Operating income
decreased by 5.1 billion yen from the same period of the previous
fiscal year due primarily to a shift in project portfolios.
Industrial Automation Systems
Total sales: 315.3 billion (5% decrease from the same
yen period last year)
Operating 29.6 billion (11.3 billion yen decrease
income: yen from the same period last
year)
The factory automation systems business saw an increase in
orders from the same period of the previous fiscal year mainly due
to a growth in capital expenditures in the fields of smartphones
and electrical automotives in China, while sales experienced a
decrease from the same period of the previous fiscal year due to
decreased capital expenditures of the power distribution products
in Japan and the negative influences caused by the stronger
yen.
The automotive equipment business saw decreases in both orders
and sales from the same period of the previous fiscal year due
primarily to stagnation in car sales in Japan and the negative
influence of the stronger yen, despite growth in car sales mainly
in Europe.
As a result, total sales for this segment decreased by 5% from
the same period of the previous fiscal year. Operating income
decreased by 11.3 billion yen from the same period of the previous
fiscal year due primarily to a decrease in sales.
Information and Communication Systems
Total sales: 124.7 billion (3% decrease from the same
yen period last year)
Operating 7.0 billion (9.1 billion yen improvement
income: yen from the same period last
year, turning into profit)
The telecommunications equipment business saw decreases in both
orders and sales compared to the same period of the previous fiscal
year due primarily to the sellout of an affiliated company in the
beginning of the fiscal year and decreased sales of communications
infrastructure equipment.
The information systems and service business saw a decrease in
sales compared to the same period of the previous fiscal year,
owing to a decrease in the IT infrastructure service business.
The electronic systems business saw a decrease in orders
compared to the same period of the previous fiscal year due to a
shift in the portfolio of large-scale projects in the space
business, while sales experienced an increase compared to the same
period of the previous fiscal year due primarily to the progress
with large-scale projects in the defense systems business.
As a result, total sales for this segment decreased by 3%
compared to the same period of the previous fiscal year. Operating
income improved by 9.1 billion yen from the same period of the
previous fiscal year, turning into profit, due primarily to a shift
in project portfolios.
Electronic Devices
Total sales: 47.4 billion (17% decrease from the same
yen period last year)
Operating 0.8 billion (3.2 billion yen decrease
income: yen from the same period last
year)
The electronic devices business saw an increase in orders from
the same period of the previous fiscal year due to an increase in
optical communication devices, while sales decreased by 17%
compared to the same period of the previous fiscal year due to a
decrease in demand for power modules, along with the negative
influences of the 2016 Kumamoto earthquakes and the stronger
yen.
As a result, operating income decreased by 3.2 billion yen
compared to the same period of the previous fiscal year due
primarily to a decrease in sales.
Home Appliances
Total sales: 257.4 billion (Unchanged from the same
yen period last year)
Operating 16.8 billion (Unchanged from the same
income: yen period last year)
The home appliances business remained unchanged compared to the
same period of the previous fiscal year, with an increase in sales
of air conditioners in the European and North American markets,
despite of the negative influence of the stronger yen.
Operating income remained unchanged compared to the same period
of the previous fiscal year.
Others
Total sales: 180.3 billion (3% increase from the same
yen period last year)
Operating 6.7 billion (0.2 billion yen increase
income: yen from the same period last
year)
Sales increased by 3% compared to the same period of the
previous fiscal year mainly due to increases among affiliated
engineering companies.
Operating income increased by 0.2 billion yen from the same
period of the previous fiscal year due primarily to an increase in
sales.
Financial Standing
An Analysis on the Status of Assets, Liabilities, Equity and
Cash Flow on a Consolidated Basis
The Company's total assets as of the end of this fiscal quarter
decreased from the end of the previous fiscal year by 243.2 billion
yen to 3,816.6 billion yen. The change in the balance of total
assets is mainly attributable to increases in the balances of cash
and cash equivalents by 10.9 billion yen, and of inventories by
10.9 billion yen as a result of work-in-process as recorded in
commensurate with progress in job orders under pertinent contracts,
while trade receivables decreased by 190.2 billion yen primarily as
a result of credit collection and investments decreased by 48.0
billion yen mainly due to falling stock prices.
Total liabilities decreased from the end of the previous fiscal
year by 175.2 billion yen to 1,947.1 billion yen. The outstanding
balances of debts and corporate bonds decreased by 33.2 billion yen
from the end of the previous fiscal year to 370.7 billion yen,
resulting in a decline in the ratio of interest bearing debt to
total assets to 9.7%, representing a 0.3 point decrease compared to
the end of the previous fiscal year. Retirement and severance
benefits increased by 8.4 billion yen, mainly resulting from a
decrease in pension assets following a fall in stock prices, while
the outstanding balance of trade payables decreased by 107.5
billion yen and other current liabilities decreased by 39.0 billion
yen.
Mitsubishi Electric Corporation shareholders' equity decreased
by 61.1 billion yen compared to the end of the previous fiscal year
to 1,777.6 billion yen. The shareholders' equity ratio was recorded
at 46.6%, representing a 1.3 point increase compared to the end of
the previous fiscal year. These changes referred to above primarily
resulted from a dividend payment of 38.6 billion yen and a decrease
in accumulated other comprehensive income by 109.9 billion yen
caused by such factors as the stronger yen and falling stock
prices, despite an increase from recording a net income
attributable to Mitsubishi Electric Corporation of 88.3 billion
yen.
Cash flows from operating activities decreased by 2.2 billion
yen compared to the same period of the previous fiscal year to
177.5 billion yen (cash in). Cash flows from investing activities
decreased by 36.0 billion yen compared to the same period of the
previous fiscal year to 58.9 billion yen (cash out) due to
increases in proceeds from the sale of short-term investments and
investment securities and other factors. As a result, free cash
flow was 118.6 billion yen (cash in). Cash flows from financing
activities were 77.7 billion yen (cash out) mainly due to dividend
payment.
Forecast for Fiscal 2017 (year ending March 31, 2017)
The consolidated earnings forecast for fiscal 2017, ending March
31, 2017, has been revised from the previous forecast announced on
July 28, 2016. Net sales is expected to fall below the previous
forecast, mainly as a result of the company's revised terms of
foreign currency rates in which it sees the yen stronger in and
after the third quarter of fiscal 2017. Operating income and other
figures, however, are expected to exceed the previous forecast
owing mainly to the improved profitability of air conditioners
outside Japan in the Home Appliances segment and the positive
results of business improvement measures in the Information and
Communication Systems segment.
Consolidated Earnings Forecast for Fiscal 2017
Consolidated Previous Current forecast
forecast
(announced
July 28)
------------------------ ---------------- -----------------------------------
Net sales: 4,180.0 billion 4,150.0 (6% decrease from
yen billion fiscal 2016)
yen
------------------------ ---------------- -------------- -------------------
Operating income: 235.0 billion 250.0 billion (17% decrease
yen yen from fiscal 2016)
------------------------ ---------------- -------------- -------------------
Income before 255.0 billion 265.0 billion (17% decrease
income taxes: yen yen from fiscal 2016)
------------------------ ---------------- -------------- -------------------
Net income attributable 175.0 billion 185.0 billion (19% decrease
to yen yen from fiscal 2016)
Mitsubishi Electric
Corp.:
------------------------ ---------------- -------------- -------------------
Note: The results forecast above is based on assumptions
deemed reasonable by the Company at the present
time, and actual results may differ significantly
from forecasts. Please refer to the cautionary
statement at the end.
---------------------------------------------------------
Consolidated Financial Results Summary
1. Consolidated Half-year Results
(In billions of yen except where noted)
FY '16 1(st) FY '17 1(st) B - B/A
half (A) half (B) A (%)
(Apr. 1, (Apr. 1,
2015 - Sept. 2016 - Sept.
30, 2015) 30, 2016)
------------------------- -------------- -------------- -------- -----
Net sales 2,063.2 1,972.3 (90.9) 96
------------------------- -------------- -------------- -------- -----
Operating income 127.0 121.7 (5.2) 96
------------------------- -------------- -------------- -------- -----
Income before
income taxes 133.0 123.7 (9.3) 93
------------------------- -------------- -------------- -------- -----
Net income attributable
to Mitsubishi
Electric Corp. 92.9 88.3 (4.5) 95
------------------------- -------------- --------------
Basic net income
per share attributable
to Mitsubishi (2.(13)
Electric Corp. 43.(29) yen 41.(16) yen yen) 95
------------------------- -------------- -------------- -------- -----
2. Consolidated Second-quarter Results
(In billions of yen except where noted)
FY '16 Q2 FY '17 Q2 B - B/A
(A) (B) A
(Jul. 1, (Jul. 1, (%)
2015 - 2016 - Sept.
30, 2016)
Sept. 30,
2015)
------------------------- ------------ --------------- -------- -----
Net sales 1,074.8 1,045.2 (29.5) 97
------------------------- ------------ --------------- -------- -----
Operating income 72.3 62.0 (10.3) 86
------------------------- ------------ --------------- -------- -----
Income before
income taxes 65.8 62.7 (3.1) 95
------------------------- ------------ --------------- -------- -----
Net income attributable
to Mitsubishi
Electric Corp. 46.6 45.4 (1.1) 97
------------------------- ------------ ---------------
Basic net income
per share attributable
to Mitsubishi (0.(54)
Electric Corp. 21.(71) yen 21.(17) yen yen) 97
------------------------- ------------ --------------- -------- -----
Notes:
1) Consolidated financial charts made in accordance with U.S.
GAAP.
2) The Company has 218 consolidated subsidiaries.
Consolidated Profit and Loss Statement (First Half, Fiscal
2017)
(In millions of yen)
FY '16 1(st) FY '17 1(st)
half half
(Apr. 1, (Apr. 1,
2015 - 2016 -
Sept. 30, Sept. 30,
2015) 2016)
(A) % of (B) % of B - A B/A
total total (%)
---------- -------
Net sales 2,063,285 100.0 1,972,354 100.0 (90,931) 96
----------------------------- ---------- ------- ---------- ------- --------- -----
Cost of sales 1,432,770 69.4 1,358,355 68.9 (74,415) 95
----------------------------- ---------- ------- ---------- ------- --------- -----
Selling, general
and
administrative
expenses 499,497 24.2 490,308 24.8 (9,189) 98
----------------------------- ---------- ------- ---------- ------- --------- -----
Loss on impairment
of
long-lived assets 4,004 0.2 1,944 0.1 (2,060) 49
----------------------------- ---------- ------- ---------- ------- --------- -----
Operating income 127,014 6.2 121,747 6.2 (5,267) 96
----------------------------- ---------- ------- ---------- ------- --------- -----
Other income 26,573 1.2 35,843 1.8 9,270 135
----------------------------- ---------- ------- ---------- ------- --------- -----
Interest and dividends 4,279 0.2 4,262 0.2 (17) 100
----------------------------- ---------- ------- ---------- ------- --------- -----
Equity in earnings
of affiliated companies 13,261 0.6 9,523 0.5 (3,738) 72
----------------------------- ---------- ------- ---------- ------- --------- -----
Other 9,033 0.4 22,058 1.1 13,025 244
----------------------------- ---------- ------- ---------- ------- --------- -----
Other expenses 20,529 1.0 33,864 1.7 13,335 165
----------------------------- ---------- ------- ---------- ------- --------- -----
Interest 1,830 0.1 1,562 0.1 (268) 85
----------------------------- ---------- ------- ---------- ------- --------- -----
Other 18,699 0.9 32,302 1.6 13,603 173
----------------------------- ---------- ------- ---------- ------- --------- -----
Income before income
taxes 133,058 6.4 123,726 6.3 (9,332) 93
----------------------------- ---------- ------- ---------- ------- --------- -----
Income taxes 33,925 1.6 29,158 1.5 (4,767) 86
Net income 99,133 4.8 94,568 4.8 (4,565) 95
----------------------------- ---------- ------- ---------- ------- --------- -----
Net income attributable
to
the noncontrolling
interests 6,208 0.3 6,226 0.3 18 100
----------------------------- ---------- ------- ---------- ------- --------- -----
Net income attributable
to Mitsubishi Electric
Corp. 92,925 4.5 88,342 4.5 (4,583) 95
----------------------------- ---------- ------- ---------- ------- --------- -----
Consolidated Comprehensive Income Statement (First Half, Fiscal
2017)
(In millions of yen)
FY '16 FY '17 B -
1(st) half 1(st) half A
(A) (B)
(Apr. 1, (Apr. 1,
2015 - 2016 -
Sept. 30, Sept. 30,
2015) 2016)
------------------------------- ------------ ------------ ---------
Net income 99,133 94,568 (4,565)
-------------------------------- ------------ ------------ ---------
Other comprehensive income
(loss), net of tax
-------------------------------- ------------ ------------ ---------
Foreign currency translation
adjustments (32,458) (93,760) (61,302)
------------------------------- ------------ ------------ ---------
Pension liability adjustments (25,977) (4,776) 21,201
------------------------------- ------------ ------------ ---------
Unrealized gains (losses)
on securities (30,153) (20,191) 9,962
------------------------------- ------------ ------------ ---------
Unrealized gains (losses)
on derivative instruments (17) (42) (25)
------------------------------- ------------ ------------ ---------
Total (88,605) (118,769) (30,164)
-------------------------------- ------------ ------------ ---------
Comprehensive income (loss) 10,528 (24,201) (34,729)
-------------------------------- ------------ ------------ ---------
Comprehensive income (loss)
attributable to
the noncontrolling interests 2,236 (2,596) (4,832)
-------------------------------- ------------ ------------ ---------
Comprehensive income (loss)
attributable to
Mitsubishi Electric Corp. 8,292 (21,605) (29,897)
-------------------------------- ------------ ------------ ---------
Consolidated Profit and Loss Statement (Second Quarter, Fiscal
2017)
(In millions of yen)
FY '16 Q2 FY '17 Q2
(Jul. 1, (Jul. 1,
2015 - 2016 -
Sept. 30, Sept. 30,
2015) 2016)
(A) % of (B) % of B - A B/A
total total (%)
---------- -------
Net sales 1,074,845 100.0 1,045,277 100.0 (29,568) 97
----------------------------- ---------- ------- ---------- ------- --------- -----
Cost of sales 741,722 69.0 730,852 69.9 (10,870) 99
----------------------------- ---------- ------- ---------- ------- --------- -----
Selling, general
and
administrative
expenses 256,737 23.9 250,438 24.0 (6,299) 98
----------------------------- ---------- ------- ---------- ------- --------- -----
Loss on impairment
of
long-lived assets 4,004 0.4 1,944 0.2 (2,060) 49
----------------------------- ---------- ------- ---------- ------- --------- -----
Operating income 72,382 6.7 62,043 5.9 (10,339) 86
----------------------------- ---------- ------- ---------- ------- --------- -----
Other income 13,393 1.3 9,303 0.9 (4,090) 69
----------------------------- ---------- ------- ---------- ------- --------- -----
Interest and dividends 1,245 0.1 1,401 0.1 156 113
----------------------------- ---------- ------- ---------- ------- --------- -----
Equity in earnings
of affiliated companies 8,212 0.8 5,936 0.6 (2,276) 72
----------------------------- ---------- ------- ---------- ------- --------- -----
Other 3,936 0.4 1,966 0.2 (1,970) 50
----------------------------- ---------- ------- ---------- ------- --------- -----
Other expenses 19,894 1.9 8,629 0.8 (11,265) 43
----------------------------- ---------- ------- ---------- ------- --------- -----
Interest 904 0.1 803 0.1 (101) 89
----------------------------- ---------- ------- ---------- ------- --------- -----
Other 18,990 1.8 7,826 0.7 (11,164) 41
----------------------------- ---------- ------- ---------- ------- --------- -----
Income before income
taxes 65,881 6.1 62,717 6.0 (3,164) 95
----------------------------- ---------- ------- ---------- ------- --------- -----
Income taxes 16,427 1.5 14,398 1.4 (2,029) 88
Net income 49,454 4.6 48,319 4.6 (1,135) 98
----------------------------- ---------- ------- ---------- ------- --------- -----
Net income attributable
to
the noncontrolling
interests 2,846 0.3 2,891 0.3 45 102
----------------------------- ---------- ------- ---------- ------- --------- -----
Net income attributable
to Mitsubishi Electric
Corp. 46,608 4.3 45,428 4.3 (1,180) 97
----------------------------- ---------- ------- ---------- ------- --------- -----
Consolidated Comprehensive Income Statement (Second Quarter,
Fiscal 2017)
(In millions of yen)
FY '16 FY '17 B -
Q2 (A) Q2 (B) A
(Jul. 1, (Jul. 1,
2015 - 2016 -
Sept. 30, Sept. 30,
2015) 2016)
--- ------------------------------- ----------- ----------- --------
Net income 49,454 48,319 (1,135)
------------------------------------ ----------- ----------- --------
Other comprehensive income
(loss), net of tax
------------------------------------ ----------- ----------- --------
Foreign currency translation
adjustments (37,989) (26,216) 11,773
----------------------------------- ----------- ----------- --------
Pension liability adjustments (36,849) 10,064 46,913
----------------------------------- ----------- ----------- --------
Unrealized gains (losses)
on securities (36,960) 7,776 44,736
----------------------------------- ----------- ----------- --------
Unrealized gains (losses)
on derivative instruments (54) (8) 46
----------------------------------- ----------- ----------- --------
Total (111,852) (8,384) 103,468
------------------------------------ ----------- ----------- --------
Comprehensive income (loss) (62,398) 39,935 102,333
------------------------------------ ----------- ----------- --------
Comprehensive income (loss)
attributable to
the noncontrolling interests (1,668) 865 2,533
------------------------------------ ----------- ----------- --------
Comprehensive income (loss)
attributable to
Mitsubishi Electric Corp. (60,730) 39,070 99,800
------------------------------------ ----------- ----------- --------
Consolidated Balance Sheet
(In millions of yen)
FY '16 FY ' 17 B - A
(A)
(ended 1(st)
Mar. 31, half (B)
2016)
(ended
Sept.
30, 2016)
------------------------------------ ----------- ------------ ----------
(Assets)
Current assets 2,551,863 2,377,463 (174,400)
------------------------------------ ----------- ------------ ----------
Cash and cash equivalents 574,170 585,160 10,990
------------------------------------ ----------- ------------ ----------
Trade receivables 1,035,168 846,089 (189,079)
------------------------------------ ----------- ------------ ----------
Inventories 644,127 655,035 10,908
------------------------------------ ----------- ------------ ----------
Prepaid expenses and other
current assets 298,398 291,179 (7,219)
------------------------------------ ----------- ------------ ----------
Long-term trade receivables 4,661 3,486 (1,175)
------------------------------------ ----------- ------------ ----------
Investments 537,706 489,634 (48,072)
------------------------------------ ----------- ------------ ----------
Net property, plant and
equipment 712,599 702,666 (9,933)
------------------------------------ ----------- ------------ ----------
Other assets 253,112 243,449 (9,663)
------------------------------------ ----------- ------------ ----------
Total assets 4,059,941 3,816,698 (243,243)
==================================== =========== ============ ==========
(Liabilities)
Current liabilities 1,507,943 1,343,084 (164,859)
------------------------------------ ----------- ------------ ----------
Bank loans and current
portion of long-term debt 116,532 98,272 (18,260)
------------------------------------ ----------- ------------ ----------
Trade payables 773,714 666,214 (107,500)
------------------------------------ ----------- ------------ ----------
Other current liabilities 617,697 578,598 (39,099)
------------------------------------ ----------- ------------ ----------
Long-term debt 287,507 272,514 (14,993)
------------------------------------ ----------- ------------ ----------
Retirement and severance
benefits 229,750 238,216 8,466
------------------------------------ ----------- ------------ ----------
Other fixed liabilities 97,238 93,378 (3,860)
------------------------------------ ----------- ------------ ----------
Total liabilities 2,122,438 1,947,192 (175,246)
------------------------------------ ----------- ------------ ----------
(Equity)
Mitsubishi Electric Corp.
shareholders' equity 1,838,773 1,777,600 (61,173)
------------------------------------ ----------- ------------ ----------
Common stock 175,820 175,820
------------------------------------ ----------- ------------ ----------
Capital surplus 211,999 211,926 (73)
------------------------------------ ----------- ------------ ----------
Retained earnings 1,502,027 1,551,727 49,700
------------------------------------ ----------- ------------ ----------
Accumulated other comprehensive
income (loss) (50,699) (160,646) (109,947)
------------------------------------ ----------- ------------ ----------
Treasury stock at cost (374) (1,227) (853)
------------------------------------ ----------- ------------ ----------
Noncontrolling interests 98,730 91,906 (6,824)
------------------------------------ ----------- ------------ ----------
Total equity 1,937,503 1,869,506 (67,997)
------------------------------------ ----------- ------------ ----------
Total liabilities and equity 4,059,941 3,816,698 (243,243)
==================================== =========== ============ ==========
Balance of Debt 404,039 370,786 (33,253)
------------------------------------ ----------- ------------ ----------
Accumulated other comprehensive
income (loss):
------------------------------------ ----------- ------------ ----------
Foreign currency translation
adjustments 39,847 (45,109) (84,956)
------------------------------------ ----------- ------------ ----------
Pension liability adjustments (184,231) (189,007) (4,776)
------------------------------------ ----------- ------------ ----------
Unrealized gains on securities 93,742 73,560 (20,182)
------------------------------------ ----------- ------------ ----------
Unrealized gains (losses)
on derivative
instruments (57) (90) (33)
------------------------------------ ----------- ------------ ----------
Consolidated Cash Flow Statement
(In millions of yen)
FY '16 FY '17 B - A
1(st) half 1(st) half
(Apr. 1, (Apr. 1,
2015 - 2016 -
Sept. 30, Sept. 30,
2015) 2016)
(A) (B)
---- ------------------------------- ------------ ------------ ---------
I Cash flows from operating
activities
1 Net income 99,133 94,568 (4,565)
---- ------------
2 Adjustments to reconcile
net income to net cash
provided by operating
activities
(1) Depreciation of tangible
fixed assets and other 69,774 64,755 (5,019)
---- ------------------------------- ------------ ------------ ---------
(2) Decrease in trade
receivables 173,200 143,347 (29,853)
---- ------------------------------- ------------ ------------ ---------
(3) Decrease (increase)
in inventories (19,907) (45,816) (25,909)
---- ------------------------------- ------------ ------------ ---------
(4) Increase (decrease)
in trade payables (98,053) (78,220) 19,833
---- ------------------------------- ------------ ------------ ---------
(5) Other, net (44,274) (1,045) 43,229
---- ------------------------------- ------------ ------------ ---------
Net cash provided by operating
activities 179,873 177,589 (2,284)
---- ------------------------------- ------------ ------------ ---------
II Cash flows from investing
activities
1 Capital expenditure (86,019) (82,648) 3,371
---- ------------------------------- ------------ ------------ ---------
Proceeds from sale of
2 property, plant and equipment 1,177 4,413 3,236
---- ------------------------------- ------------ ------------ ---------
Purchase of short-term
investments and investment
securities (net of cash
3 acquired) (4,139) (2,385) 1,754
---- ------------------------------- ------------ ------------ ---------
Proceeds from sale of
short-term investments
and investment securities
4 (net of cash disposed) 2,240 17,033 14,793
---- ------------------------------- ------------ ------------ ---------
5 Other, net (8,269) 4,630 12,899
---- ------------------------------- ------------ ------------ ---------
Net cash used in investing
activities (95,010) (58,957) 36,053
------------ ------------ ---------
I+II Free cash flow 84,863 118,632 33,769
------------------------------------- ------------ ------------ ---------
III Cash flows from financing
activities
Proceeds from long-term
1 debt 30,100 47 (30,053)
---- ------------------------------- ------------ ------------ ---------
Repayment of long-term
2 debt (53,818) (30,939) 22,879
---- ------------------------------- ------------ ------------ ---------
Increase (decrease) in
3 bank loans, net (2,040) (2,830) (790)
---- ------------------------------- ------------ ------------ ---------
4 Dividends paid (38,642) (38,642) 0
---- ------------------------------- ------------ ------------ ---------
5 Purchase of treasury stock (27) (1,095) (1,068)
---- ------------------------------- ------------ ------------ ---------
Reissuance of treasury
6 stock 0 0 0
---- ------------------------------- ------------ ------------ ---------
7 Other, net (5,018) (4,307) 711
---- ------------------------------- ------------ ------------ ---------
Net cash provided by (used
in) financing activities (69,445) (77,766) (8,321)
---- ------------------------------- ------------ ------------ ---------
Effect of exchange rate
changes on cash and cash
IV equivalents (10,490) (29,876) (19,386)
---- ------------------------------- ------------ ------------ ---------
Net increase in cash and
V cash equivalents 4,928 10,990 6,062
---- ------------------------------- ------------ ------------ ---------
Cash and cash equivalents
VI at beginning of period 568,517 574,170 5,653
------------ ------------ ---------
Cash and cash equivalents
VII at end of period 573,445 585,160 11,715
---- ------------------------------- ------------ ------------ ---------
Consolidated Segment Information (First Half, Fiscal 2017)
1. Sales and Operating Income by Business Segment
(In millions of yen)
Business Segment FY '16 1(st) FY '17 1(st) C - D - C/A
half half A B (%)
(Apr. 1, 2015 (Apr. 1, 2016
- -
Sept. 30, Sept. 30,
2015) 2016)
----------------------- ---------------------- --------- --------- -----
Sales Operating Sales Operating
(A) income (C) income
(loss) (D)
(B)
----------------------- ---------- ---------- ---------- ---------- --------- --------- -----
Energy and Electric
Systems 523,778 3,773 525,471 9,182 1,693 5,409 100
----------------------- ---------- ---------- ---------- ---------- --------- --------- -----
Industrial Automation
Systems 661,520 83,919 617,620 62,111 (43,900) (21,808) 93
----------------------- ---------- ---------- ---------- ---------- --------- --------- -----
Information
and
Communication
Systems 224,037 (3,815) 198,266 3,868 (25,771) 7,683 88
----------------------- ---------- ---------- ---------- ---------- --------- --------- -----
Electronic Devices 123,208 16,351 86,537 1,774 (36,671) (14,577) 70
----------------------- ---------- ---------- ---------- ---------- --------- --------- -----
Home Appliances 511,138 33,194 519,397 48,668 8,259 15,474 102
----------------------- ---------- ---------- ---------- ---------- --------- --------- -----
Others 338,484 7,367 336,771 9,395 (1,713) 2,028 99
----------------------- ---------- ---------- ---------- ---------- --------- --------- -----
Subtotal 2,382,165 140,789 2,284,062 134,998 (98,103) (5,791) 96
----------------------- ---------- ---------- ---------- ---------- --------- --------- -----
Eliminations
and other (318,880) (13,775) (311,708) (13,251) 7,172 524 -
----------------------- ---------- ---------- ---------- ---------- --------- --------- -----
Total 2,063,285 127,014 1,972,354 121,747 (90,931) (5,267) 96
----------------------- ---------- ---------- ---------- ---------- --------- --------- -----
*Note: Inter-segment sales are included in the above chart.
2. Sales and Operating Income by Location
(In millions of yen)
Location FY '16 1(st) FY '17 1(st) C - D - C/A
half half A B (%)
(Apr. 1, 2015 (Apr. 1, 2016
- -
Sept. 30, 2015) Sept. 30,
2016)
----------------- ---------------------- ---------- --------- -----
Sales Operating Sales Operating
(A) income (C) income
(B) (D)
----------------- ---------- ---------- ---------- ---------- ---------- --------- -----
Japan 1,625,040 61,219 1,540,435 48,362 (84,605) (12,857) 95
----------------- ---------- ---------- ---------- ---------- ---------- --------- -----
North America 223,338 4,439 203,856 4,120 (19,482) (319) 91
----------------- ---------- ---------- ---------- ---------- ---------- --------- -----
Asia (excluding
Japan) 544,863 48,280 506,153 49,270 (38,710) 990 93
----------------- ---------- ---------- ---------- ---------- ---------- --------- -----
Europe 207,060 9,755 213,063 8,643 6,003 (1,112) 103
----------------- ---------- ---------- ---------- ---------- ---------- --------- -----
Others 24,906 575 22,019 877 (2,887) 302 88
----------------- ---------- ---------- ---------- ---------- ---------- --------- -----
Subtotal 2,625,207 124,268 2,485,526 111,272 (139,681) (12,996) 95
----------------- ---------- ---------- ---------- ---------- ---------- --------- -----
Eliminations (561,922) 2,746 (513,172) 10,475 48,750 7,729 -
----------------- ---------- ---------- ---------- ---------- ---------- --------- -----
Total 2,063,285 127,014 1,972,354 121,747 (90,931) (5,267) 96
----------------- ---------- ---------- ---------- ---------- ---------- --------- -----
*Note: Inter-segment sales are included in the above chart.
3. Sales by Location of Customers
(In millions of yen)
Location of Customers FY '16 1(st) FY '17 1(st) B - B/A
half half A (%)
(Apr. 1, 2015 (Apr. 1, 2016
- -
Sept. 30, Sept. 30,
2015) 2016)
------------------------- --------- -----
Sales % of Sales % of
(A) total (B) total
net net
sales sales
----------------------- ---------- ------- ---------- ------- --------- -----
Japan 1,105,521 53.6 1,081,895 54.9 (23,626) 98
------------------------ ---------- ------- ---------- ------- --------- -----
North America 222,936 10.8 202,738 10.3 (20,198) 91
----------------------- ---------- ------- ---------- ------- --------- -----
Asia
(excluding
Japan) 494,960 24.0 450,994 22.9 (43,966) 91
----------------------- ---------- ------- ---------- ------- --------- -----
Europe 194,096 9.4 196,446 9.9 2,350 101
----------------------- ---------- ------- ---------- ------- --------- -----
Others 45,772 2.2 40,281 2.0 (5,491) 88
----------------------- ---------- ------- ---------- ------- --------- -----
Total overseas
sales 957,764 46.4 890,459 45.1 (67,305) 93
------------------------ ---------- ------- ---------- ------- --------- -----
Consolidated
total 2,063,285 100.0 1,972,354 100.0 (90,931) 96
------------------------- ---------- ------- ---------- ------- --------- -----
Consolidated Segment Information (Second Quarter, Fiscal
2017)
1. Sales and Operating Income by Business Segment
(In millions of yen)
Business Segment FY '16 Q2 FY '17 Q2 C - D - C/A
A B
(Jul. 1, 2015 (Jul. 1, 2016 (%)
- -
Sept. 30, 2015) Sept. 30, 2016)
------------------ ---------------------- --------- --------- -----
Sales Operating Sales Operating
(A) income (C) income
(loss) (D)
(B)
------------------ ---------- ---------- ---------- ---------- --------- --------- -----
Energy and
Electric
Systems 287,097 10,439 287,420 5,256 323 (5,183) 100
------------------ ---------- ---------- ---------- ---------- --------- --------- -----
Industrial
Automation
Systems 333,170 41,052 315,393 29,690 (17,777) (11,362) 95
------------------ ---------- ---------- ---------- ---------- --------- --------- -----
Information
and
Communication
Systems 128,628 (2,060) 124,741 7,047 (3,887) 9,107 97
------------------ ---------- ---------- ---------- ---------- --------- --------- -----
Electronic
Devices 57,091 4,019 47,457 815 (9,634) (3,204) 83
------------------ ---------- ---------- ---------- ---------- --------- --------- -----
Home Appliances 257,046 16,950 257,472 16,882 426 (68) 100
------------------ ---------- ---------- ---------- ---------- --------- --------- -----
Others 175,294 6,464 180,381 6,752 5,087 288 103
------------------ ---------- ---------- ---------- ---------- --------- --------- -----
Subtotal 1,238,326 76,864 1,212,864 66,442 (25,462) (10,422) 98
------------------ ---------- ---------- ---------- ---------- --------- --------- -----
Eliminations
and other (163,481) (4,482) (167,587) (4,399) (4,106) 83 -
------------------ ---------- ---------- ---------- ---------- --------- --------- -----
Total 1,074,845 72,382 1,045,277 62,043 (29,568) (10,339) 97
------------------ ---------- ---------- ---------- ---------- --------- --------- -----
*Note: Inter-segment sales are included in the above chart.
2. Sales and Operating Income by Location
(In millions of yen)
Location FY '16 Q2 FY '17 Q2 C - D - C/A
A B
(Jul. 1, 2015 (Jul. 1, 2016 (%)
- -
Sept. 30, 2015) Sept. 30, 2016)
----------------- ---------------------- --------- --------- -----
Sales Operating Sales Operating
(A) income (C) income
(B) (D)
----------------- ---------- ---------- ---------- ---------- --------- --------- -----
Japan 866,669 34,404 845,720 30,416 (20,949) (3,988) 98
----------------- ---------- ---------- ---------- ---------- --------- --------- -----
North America 111,183 3,363 101,731 507 (9,452) (2,856) 91
----------------- ---------- ---------- ---------- ---------- --------- --------- -----
Asia (excluding
Japan) 255,312 19,262 244,377 19,876 (10,935) 614 96
----------------- ---------- ---------- ---------- ---------- --------- --------- -----
Europe 102,762 5,553 102,370 4,492 (392) (1,061) 100
----------------- ---------- ---------- ---------- ---------- --------- --------- -----
Others 12,630 368 11,012 434 (1,618) 66 87
----------------- ---------- ---------- ---------- ---------- --------- --------- -----
Subtotal 1,348,556 62,950 1,305,210 55,725 (43,346) (7,225) 97
----------------- ---------- ---------- ---------- ---------- --------- --------- -----
Eliminations (273,711) 9,432 (259,933) 6,318 13,778 (3,114) -
----------------- ---------- ---------- ---------- ---------- --------- --------- -----
Total 1,074,845 72,382 1,045,277 62,043 (29,568) (10,339) 97
----------------- ---------- ---------- ---------- ---------- --------- --------- -----
*Note: Inter-segment sales are included in the above chart
3. Sales by Location of Customers
(In millions of yen)
Location of FY '16 Q2 FY '17 Q2 B - A B/A
Customers (%)
(Jul. 1, 2015 (Jul. 1, 2016
- -
Sept. 30, 2015) Sept. 30,
2016)
------------------ --------- -----
Sales % of Sales % of
(A) total (B) total
net sales net
sales
---------------- ---------- ----------- ---------- ------- --------- -----
Japan 606,016 56.4 610,307 58.4 4,291 101
----------------- ---------- ----------- ---------- ------- --------- -----
North America 110,120 10.2 101,209 9.7 (8,911) 92
---------------- ---------- ----------- ---------- ------- --------- -----
Asia
(excluding
Japan) 238,356 22.2 220,776 21.1 (17,580) 93
---------------- ---------- ----------- ---------- ------- --------- -----
Europe 96,228 9.0 92,950 8.9 (3,278) 97
---------------- ---------- ----------- ---------- ------- --------- -----
Others 24,125 2.2 20,035 1.9 (4,090) 83
---------------- ---------- ----------- ---------- ------- --------- -----
Total overseas
sales 468,829 43.6 434,970 41.6 (33,859) 93
----------------- ---------- ----------- ---------- ------- --------- -----
Consolidated
total 1,074,845 100.0 1,045,277 100.0 (29,568) 97
------------------ ---------- ----------- ---------- ------- --------- -----
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 its 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 4,394.3 billion yen (US$ 38.8 billion*) in the fiscal year
ended March 31, 2016. For more information visit:
http://www.MitsubishiElectric.com
*At an exchange rate of 113 yen to the US dollar, the rate given
by the Tokyo Foreign Exchange Market on March 31, 2016
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR FDASLFFMSEIS
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