TIDMMEL
RNS Number : 8131N
Mitsubishi Electric Corporation
31 October 2016
FOR IMMEDIATE RELEASE No. 3064
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 Difference between Earnings
Forecast and Actual Results for First Half of, and Revises Earnings
Forecast for,
Fiscal 2017 (April 1, 2016-March 31, 2017)
TOKYO, October 31, 2016 - Mitsubishi Electric Corporation
(TOKYO: 6503) announced today the difference between its
consolidated earnings forecast previously announced on July 28,
2016 and the actual results for the first half of the current
fiscal year, from April through September, 2016. The company has
also revised its consolidated earnings forecast for the current
fiscal year ending March, 2017 (fiscal 2017).
Difference in Earnings Forecast and Result for First Half of
Fiscal 2017 (In millions of yen)
Net Operating Income Net income Basic net
Sales income before attributable income per
income to Mitsubishi share attributable
taxes Electric to Mitsubishi
Corp. Electric
Corp.
---------------- ---------- ---------- -------- --------------- --------------------
Previous
forecast 32.(61)
(A) 1,960,000 90,000 100,000 70,000 yen
---------------- ---------- ---------- -------- --------------- --------------------
Actual results 41.(16)
(B) 1,972,354 121,747 123,726 88,342 yen
---------------- ---------- ---------- -------- --------------- --------------------
Differential
(B-A) 12,354 31,747 23,726 18,342
---------------- ---------- ---------- -------- --------------- --------------------
Differential
ratio (%) 0.6% 35.3% 23.7% 26.2%
---------------- ---------- ---------- -------- --------------- --------------------
cf. Fiscal
2016 first
half actual 43.(29)
results 2,063,285 127,014 133,058 92,925 yen
---------------- ---------- ---------- -------- --------------- --------------------
The consolidated net sales for the first half of fiscal 2017
exceeded the previous forecast, owing to buoyancy in automotive
equipment sales in the European and North American markets in the
Industrial Automation Systems segment, and also to large-scale
project sales recorded ahead of schedule in the Energy and Electric
Systems segment. Consolidated operating income exceeded the
previous forecast in all segments, mainly owing to improved
profitability of air conditioners outside Japan in the Home
Appliances segment, increased sales in the Energy and Electric
Systems and Industrial Automation Systems segments, and positive
results of business improvement measures in the Information and
Communication Systems segment.
Revised Forecast for Fiscal 2017 (April 1, 2016 - March 31,
2017) (In millions of yen)
Net Operating Income Net income Basic net
Sales income before attributable income per
income to Mitsubishi share attributable
taxes Electric to Mitsubishi
Corp. Electric
Corp.
-------------------- ---------- ---------- ----------- --------------- --------------------
Previous
forecast 81.(52)
(A) 4,180,000 235,000 255,000 175,000 yen
-------------------- ---------- ---------- ----------- --------------- --------------------
Revised forecast 86.(19)
(B) 4,150,000 250,000 265,000 185,000 yen
-------------------- ---------- ---------- ----------- --------------- --------------------
Differential
(B-A) (30,000) 15,000 10,000 10,000
-------------------- ---------- ---------- ----------- --------------- --------------------
Differential
ratio (%) (0.7%) 6.4% 3.9% 5.7%
-------------------- ---------- ---------- ----------- --------------- --------------------
cf. Fiscal
2016 106.(43)
actual results 4,394,353 301,172 318,476 228,494 yen
-------------------- ---------- ---------- ----------- --------------- --------------------
The consolidated net sales forecast for fiscal 2017 is expected
to fall below the previous forecast announced on July 28, 2016,
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 mainly in the
Home Appliances and Information and Communication Systems segments,
despite the negative influence of the change in terms of foreign
currency rates.
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 below.
---------------------------------------------------------
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
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