MITSUBISHI ELECTRIC CORPORATION Mitsubishi Electric Corporation (TOKYO:6503) announced today the difference between its consolidated earnings forecast previously announced on July 30, 2014 and the actual results for the first half of the current fiscal year, from April 1, 2014 ended September 30, 2014. The company has also revised its consolidated earnings forecast for fiscal 2015, from April 1, 2014 ending March 31, 2015.
Difference of Earnings Forecast and Result for First Half of Fiscal 2015 | (In millions of yen) | |||||||||
| Net Sales |
Operating |
Income before |
Net income |
Basic net income | ||||||
| Previous forecast (A) | 1,980,000 | 100,000 | 110,000 | 80,000 | 37.26 yen | |||||
| Actual results (B) | 1,972,838 | 121,391 | 145,926 | 97,854 | 45.58 yen | |||||
| Differential (B-A) | (7,162) | 21,391 | 35,926 | 17,854 | ||||||
| Differential ratio (%) | (0.4%) | 21.4% | 32.7% | 22.3% | ||||||
| cf. Fiscal 2014 first half actual results | 1,811,899 | 79,730 | 83,420 | 48,344 | 22.52 yen | |||||
The consolidated income figures for the first half of fiscal 2015 exceeded the previous forecast, with an increase in operating income owing mainly to increases in the Home Appliances segment, which showed growth in air conditioners for markets inside and outside Japan, and the Industrial Automation Systems segment, which experienced buoyant demand in capital expenditures for smartphone and automotive related investments. Income before income taxes and net income attributable to Mitsubishi Electric Corporation also exceeded the previous forecast, owing additionally to increased gain on foreign exchange due to the yen weakening towards the end of the second fiscal quarter. Net sales for the first half of fiscal 2015, meanwhile, fell below the previous forecast due to delays in large projects and other factors.
Revised Forecast for Fiscal 2015 (April 1, 2014 – March 31, 2015) | (In millions of yen) | |||||||||
| Net Sales |
Operating |
Income before |
Net income |
Basic net income | ||||||
| Previous forecast (A) | 4,220,000 | 260,000 | 260,000 | 175,000 | 81.51 yen | |||||
| Revised forecast (B) | 4,220,000 | 275,000 | 285,000 | 190,000 | 88.50 yen | |||||
| Differential (B-A) | – | 15,000 | 25,000 | 15,000 | ||||||
| Differential ratio (%) | – | 5.8% | 9.6% | 8.6% | ||||||
|
cf. Fiscal 2014
actual results | 4,054,359 | 235,172 | 248,990 | 153,473 | 71.49 yen | |||||
The consolidated earnings forecast for fiscal 2015, ending March 31, 2015, has been revised from the previous forecast announced on July 30, 2014, with operating income and other figures expected to exceed the previous forecast, owing mainly to increases in the Industrial Automation Systems and the Home Appliances segments.
| 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 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 4,054.3
billion yen (US$ 39.3 billion*) in the fiscal year ended March 31, 2014.
For more information visit http://www.MitsubishiElectric.com
*At
an exchange rate of 103 yen to the US dollar, the rate given by the
Tokyo Foreign Exchange Market on March 31, 2014
