MEL.L Regulatory News (MEL)

3 Feb 2006 07:00

Mitsubishi Electric Corporation02 February 2006 FOR IMMEDIATE RELEASE No. 2380 Investor Relations Inquiries: Media Contact:Yasumitsu Kugenuma Travis WoodwardCorporate Finance Department Public Relations DepartmentMitsubishi Electric Corporation Mitsubishi Electric CorporationTel: +81-3-3218-2391 Tel: +81-3-3218-3380Cad.Irg@rk.MitsubishiElectric.co.jp Travis.Woodward@eb.MitsubishiElectric.co.jp http://global.mitsubishielectric.com/news/index.html MITSUBISHI ELECTRIC ANNOUNCES CONSOLIDATED FINANCIAL RESULTS FOR THE THIRD QUARTER OF FISCAL 2006 Tokyo, February 2, 2006 - Mitsubishi Electric Corporation (President and CEO: Tamotsu Nomakuchi)announced today its financial results for the third quarter, ending December 31, 2005, of the current fiscalyear ending March 31, 2006 (fiscal 2006). Consolidated Financial Results Net sales: 834.5 billion yen (12% increase from same quarter last year)Operating income: 49.0 billion yen (70% increase from same quarter last year)Income before income taxes: 47.2 billion yen (80% increase from same quarter last year)Net income: 32.2 billion yen (88% increase from same quarter last year) The business environment during the third quarter of fiscal 2006 saw strengthening undertones in the globaleconomy in places like the U.S. and China. The Japanese economy too saw a slow comeback mainly indomestic demand, and continued stability in demands for capital spending. Under these circumstances, third quarter net sales rose 12% to 834.5 billion yen compared to the sameperiod of the previous fiscal year. Operating income increased 70% from the same quarter last year to 49.0billion yen due to increased profit in the Energy and Electric Systems, Industrial Automation Systems,Information and Communication Systems, and Electronic Devices segments. Consolidated Financial Results by Business Segment Energy and Electric SystemsTotal sales: 187.3 billion yen (24% increase from same quarter last year)Operating income: 11.6 billion yen (7.8 billion yen increase from same quarter last year) The social infrastructure systems business saw increases in both orders and sales from the same quarter lastyear from reintegration of electric transmission and distribution related business in addition to expansions inthe overseas business for electric equipment for rolling stock. Building system business experienced an increase in both orders and sales from the same period last yeardue to an increase in domestic large-scale orders for elevators and escalators in addition to initiatives in theMiddle East. As a result, total sales for this segment increased 24% from the same quarter last year, and operating incomeincreased 7.8 billion yen from the same quarter last year due to increases in sales, etc. Industrial Automation Systems Total sales: 216.2 billion yen (12% increase from same quarter last year)Operating income: 31.3 billion yen (10.1 billion yen increase from same quarter last year) Factory automation systems business saw an increase in both orders and sales from the same period last yearbecause of increases in flat panel displays- and overseas and domestic automotive-related investments.The automotive equipment business saw an increase in both orders and sales from the same period last yearwith increases in alternators and starters etc. for both domestic and overseas automotive manufacturers.As a result, total sales for this segment increased by 12% compared to the same period last year. Operatingincome rose by 10.1 billion yen compared to the same period last year due to increase in sales, etc. Information and Communication Systems Total sales: 145.4 billion yen (27% increase from same quater last year)Operating income: 7.5 billion yen (7.4 billion yen increase from same quarter last year) The telecommunications equipment business saw an increase in both orders and sales due to increases ininfrastructure equipment such as optical broadband access system products, etc. as well as mobile handsetsfor the domestic market. The information system service business saw an increase in sales from the same period last year due toexpansion in the system integration business. The electric system business saw an increase in both sales and orders from the same period last year due toorders for the Superbird 7 satellite. As a result, total sales for this segment showed an increase of 27% from the same period last year. Operatingincome increased by 7.4 billion yen from the same period last year due to increases in sales, etc. Electronic Devices Total sales: 43.2 billion yen (9% increase from same quarter last year)Operating income: 2.7 billion yen (2.2 billion yen increase from same quarter last year) The semiconductor business saw an increase in both orders and sales from the same period last year due toincreases in orders for power modules for hybrid cars and domestic industrial machinery, laser diodes forrecordable DVD players and power amplifiers for third generation mobile handsets. The liquid crystal business saw an increase in both orders and sales from the same period last year due toincreases in small and medium sized products for industrial use. As a result, total sales for this segment increased by 9% from the same period of the previous fiscal year, andoperating income increased by 2.2 billion yen from the same period of the previous fiscal year due toincreased sales, etc. Home Appliances Total sales: 202.3 billion yen (2% increase from same quarter last year)Operating income: 2.0 billion yen (7.2 billion yen decrease from same quarter last year) The home appliance business saw a 2% increase in sales from the same period last year due to increaseddemand in residential home equipment such as solar power generation systems, electric water heaters, IHcooking heaters, etc., refrigerators, and LCD televisions etc. in addition to packaged/home air conditionersfor both the foreign and domestic market. Operating income decreased by 7.2 billion yen from the same period last year due to price erosion, etc. Others Total sales: 148.8 billion yen (6% increase from same quarter last year)Operating income: 3.1 billion yen (0.5 billion yen increase from same quarter last year) Sales increased 6% from the same period last year mainly in our material procurement and real estateaffiliated companies. Operating income increased by 0.5 billion yen from the same period last year due toincreased sales, etc. Forecast for Fiscal 2006 (ending March 31, 2006) Consolidated Financial Results Net sales: 3,460 billion yen (1% increase, year-on-year)Operating income: 145 billion yen (20% increase, year-on-year)Income before income taxes: 140 billion yen (37% increase year-on-year)Net income: 83 billion yen (17% increase year-on-year) The forecast for fiscal 2006 remains unchanged from that stated on October 28, 2005, announced with theHalf-Year Results. Note: The forecast of results above is based on assumptions deemed reasonable by the Company at thepresent time, and actual results may differ significantly from forecasts. Please refer to the cautionarystatement on the last page. CONSOLIDATED FINANCIAL RESULTS 1. FISCAL 2006, 3rd QUARTER CONSOLIDATED FINANCIAL RESULTS (In billions of yen) FY '06 FY '05 3rd Q (A) 3rd Q (B) (Oct. 1, 2005 - (Oct. 1, 2004 - A/B Dec. 31, 2005) Dec. 31, 2004) (%) Net sales 834.5 743.8 112Operating income 49.0 28.8 170Income before incometaxes 47.2 26.3 180Net income 32.2 17.1 188Net income per share(in yen) 15.06 8.00 188 2. FISCAL 2006, FIRST 9 MONTH CONSOLIDATED FINANCIAL RESULTS (In billions of yen) FY '06 FY '05 9 mth (A) 9 mth (B) (Apr. 1, 2005 - (Apr. 1, 2004 - A/B Dec. 31, 2005) Dec. 31, 2004) (%) Net sales 2,482.3 2,351.7 106Operating income 95.0 72.0 132Income before incometaxes 97.9 58.3 168Net income 61.3 36.2 169Net income per share(in yen) 28.65 16.89 170 Note: 1) Consolidated financial statements are compiled according to U.S. GAAP. 2) Company has 141 consolidated subsidiaries. 3) This report is unaudited. CONSOLIDATED PROFIT AND LOSS STATEMENT Fiscal 2006, 3rd Quarter (In millions of yen) Comparison FY '06 FY'05 to same 3rd Q (A) 3rd Q (B) quarter (Oct. 1, % of (Oct.1, % of last A/B 2005 - Dec. total 2004 - Dec. total year (%) 31, 2005) 31,2004) (A-B) Net sales 834,560 100.0 743,827 100.0 90,733 112Cost of sales 608,316 72.9 550,932 74.1 57,384 110Selling, general andadministrative expenses 177,152 21.2 164,090 22.0 13,062 108Operating income 49,092 5.9 28,805 3.9 20,287 170Other income 6,992 0.8 5,189 0.7 1,803 135 Interest and Dividends 2,481 0.3 1,655 0.2 826 150 Other 4,511 0.5 3,534 0.5 977 128Other expenses 8,822 1.0 7,666 1.1 1,156 115 Interest 2,564 0.3 2,354 0.3 210 109 Other 6,258 0.7 5,312 0.8 946 118Income before income taxes 47,262 5.7 26,328 3.5 20,934 180Income taxes 20,038 2.4 11,613 1.5 8,425 173Equity in earnings ofaffiliated companies 5,063 0.6 2,452 0.3 2,611 206Net income 32,287 3.9 17,167 2.3 15,120 188 CONSOLIDATED PROFIT AND LOSS STATEMENT Fiscal 2006, First 9 Months (In millions of yen) Comparison FY '06 FY'05 to same 9 mth (A) 9 mth (B) period (Apr. 1, % of (Apr.1, % of last A/B 2005 - Dec. total 2004 - Dec. total year (%) 31, 2005) 31, 2004) (A-B) Net sales 2,482,390 100.0 2,351,785 100.0 130,605 106Cost of sales 1,843,917 74.3 1,749,932 74.4 93,985 105Selling, general andadministrative expenses 543,381 21.9 529,779 22.5 13,602 103Operating income 95,092 3.8 72,074 3.1 23,018 132Other income 34,540 1.4 22,345 0.9 12,195 155 Interest and Dividends 7,302 0.3 6,253 0.2 1,049 117 Other 27,238 1.1 16,092 0.7 11,146 169Other expenses 31,645 1.3 36,073 1.5 (4,428) 88 Interest 7,353 0.3 8,130 0.3 (777) 90 Other 24,292 1.0 27,943 1.2 (3,651) 87Income before incometaxes 97,987 3.9 58,346 2.5 39,641 168Income taxes 47,647 1.8 31,055 1.4 16,592 153Equity in earnings ofaffiliated companies 11,053 0.4 8,958 0.4 2,095 123Net income 61,393 2.5 36,249 1.5 25,144 169 CONSOLIDATED BALANCE SHEET (In millions of yen) FY '06 FY '06 3rd Q (A) 1st Half (B) FY '05 (ending Dec. (ending Sep. A -B (ending Mar. 31,2005) 30, 2005) 31, 2005)(Assets)Current assets 1,847,583 1,698,188 149,395 1,740,333Cash and cash equivalents 289,061 252,335 36,726 246,563Short-term investments 16,887 17,772 (885) 23,719Trade receivables 709,974 695,677 14,297 789,463Inventories 591,941 504,299 87,642 447,382Prepaid expenses and other current assets 239,720 228,105 11,615 233,206Long-term receivables 6,119 6,882 (763) 9,700Investments 566,833 531,957 34,876 483,547Net property, plant and equipment 602,950 583,291 19,659 570,660Other assets 262,465 305,092 (42,627) 358,232Total assets 3,285,950 3,125,410 160,540 3,162,472(Liabilities and shareholders' equity)Current liabilities 1,439,261 1,263,094 176,167 1,277,662Bank loans and current portionof long-term debt 329,003 220,777 108,226 234,242Trade payables 640,550 592,680 47,870 636,829Other current liabilities 469,708 449,637 20,071 406,591Long-term debt 445,533 501,363 (55,830) 521,542Retirement and severance benefits 458,009 502,201 (44,192) 584,601Other fixed liabilities 11,812 11,752 60 11,307Minority interests 50,495 48,266 2,229 46,723Shareholders' equity 880,840 798,734 82,106 720,637Common stock 175,820 175,820 - 175,820Capital surplus 210,930 210,672 258 210,687Retained earnings 493,941 468,070 25,871 447,548Accumulated other comprehensiveincome (loss) 659 (51,018) 51,677 (113,022)Treasury stock at cost (510) (4,810) 4,300 (396)Total liabilities and shareholders' equity 3,285,950 3,125,410 160,540 3,162,472 Balance of Debt 774,536 722,140 52,396 755,784Accumulated other comprehensive income (loss):Foreign currency translation adjustments 2,577 (4,873) 7,450 (10,722)Minimum pension liability adjustments (73,015) (101,470) 28,455 (138,658)Net unrealized gains on securities 71,097 55,325 15,772 36,358 CONSOLIDATED CASH FLOW STATEMENT Fiscal 2006, 3rd Quarter (In millions of yen) FY '06 FY '05 3rd Q (A) 3rd Q (B) (Oct. 1, 2005 - (Oct. 1, 2004 - A/B Dec. 31, 2005) Dec. 31, 2004) I Cash flows from operating activities 1 Net income 32,287 17,167 15,120 2 Adjustments to reconcile net income to net cash provided by operating activities (1) Depreciation of tangible fixed assets and other 32,895 25,953 6,942 (2) Decrease (increase) in trade receivables (8,765) 27,020 (35,785) (3) Decrease (increase) in inventories (81,429) (95,818) 14,389 (4) Increase in trade payables 44,696 20 44,676 (5) Other, net 5,196 (4,648) 9,844 Net cash provided by (used in) operating activities 24,880 (30,306) 55,186 II Cash flows from investing activities 1 Capital expenditure (29,385) (22,987) (6,398) 2 Proceeds from sale of property, plant and equipment 1,390 540 850 3 Purchase of short-term investments and investment securities (12,115) (9,755) (2,360) 4 Proceeds from sale of short-term investments and investment securities 3,908 7,900 (3,992) 5 Other, net 1,990 1,041 949 Net cash used in investing activities (34,212) (23,261) (10,951) I + II Free cash flow (9,332) (53,567) 44,235 III Cash flows from financing activities 1 Proceeds from long-term debt 46,390 1,691 44,699 2 Repayment of long-term debt (49,936) (47,278) (2,658) 3 Increase in bank loans, net 51,852 19,607 32,245 4 Dividends paid (6,416) (4,292) (2,124) 5 Purchase of treasury stock (70) (25) (45) 6 Reissuance of treasury stock 48 4 44 Net cash provided by (used in) financing activities 41,868 (30,293) 72,161 IV Effect of exchange rate changes on cash and cash equivalents 4,190 (575) 4,765 V Net increase (decrease) in cash and cash equivalents 36,726 (84,435) 121,161 VI Cash and cash equivalents at beginning of period 252,335 334,776 (82,441) VII Cash and cash equivalents at the end of period 289,061 250,341 38,720 CONSOLIDATED CASH FLOW STATEMENT Fiscal 2006, First 9 Months (In millions of yen) FY '06 FY '05 9 mth (A) 9 mth (B) (Apr. 1, 2005 - (Apr. 1, 2004 - A/B Dec. 31, 2005) Dec. 31, 2004) I Cash flows from operating activities 1 Net income 61,393 36,249 25,144 2 Adjustments to reconcile net income to net cash provided by operating activities (1) Depreciation of tangible fixed assets and other 83,730 78,881 4,849 (2) Decrease in trade receivables 108,985 124,188 (15,203) (3) Decrease (increase) in inventories (112,027) (158,699) 46,672 (4) Increase (decrease) in trade payables (22,234) (55,299) 33,065 (5) Other, net 48,484 63,978 (15,494) Net cash provided by operating activities 168,331 89,298 79,033 II Cash flows from investing activities 1 Capital expenditure (89,408) (81,310) (8,098) 2 Proceeds from sale of property, plant and equipment 3,369 12,845 (9,476) 3 Purchase of short-term investments and investment securities (30,052) (37,010) 6,958 4 Proceeds from sale of short-term investments and investment securities 21,792 35,499 (13,707) 5 Other, net (24,113) 2,881 (26,994) Net cash used in investing activities (118,412) (67,095) (51,317) I + II Free cash flow 49,919 22,203 27,716 III Cash flows from financing activities 1 Proceeds from long-term debt 58,660 46,742 11,918 2 Repayment of long-term debt (86,646) (105,686) 19,040 3 Increase (decrease) in bank loans, net 33,321 (33,212) 66,533 4 Dividends paid (15,000) (12,877) (2,123) 5 Purchase of treasury stock (4,556) (45) (4,511) 6 Reissuance of treasury stock 105 48 57 Net cash provided by (used in) financing activities (14,116) (105,030) 90,914 IV Effect of exchange rate changes on cash and cash equivalents 6,695 2,572 4,123 V Net increase (decrease) in cash and cash equivalents 42,498 (80,255) 122,753 VI Cash and cash equivalents at beginning of period 246,563 330,596 (84,033) VII Cash and cash equivalents at the end of period 289,061 250,341 38,720 CONSOLIDATED SEGMENT INFORMATION Fiscal 2006, 3rd Quarter Sales and Operating Income by Business Segment (In millions of yen) FY '06 FY '05 3rd Q 3rd Q (Oct. 1, 2005 - Dec. 31, 2005) (Oct. 1, 2004 - Dec. 31, 2004) A/B (%)Business Segment Sales (A) % of Operating Sales (B) % of Operating total income total income Energy and ElectricSystems 187,315 19.9 11,697 151,468 18.1 3,847 124Industrial AutomationSystems 216,268 22.9 31,311 192,565 23.1 21,202 112Information andCommunication Systems 145,461 15.4 7,537 114,753 13.7 96 127Electronic Devices 43,206 4.6 2,722 39,798 4.8 471 109Home Appliances 202,366 21.4 2,056 197,578 23.6 9,285 102Others 148,829 15.8 3,158 139,866 16.7 2,612 106Subtotal 943,445 100.0 58,481 836,028 100.0 37,513 113Eliminations (108,885) - (9,389) (92,201) - (8,708) -Consolidated Total 834,560 - 49,092 743,827 - 28,805 112 *Note: Inter-segment sales are included in the above chart. CONSOLIDATED SEGMENT INFORMATION Fiscal 2006, First 9 Months Sales and Operating Income by Business Segment (In millions of yen) FY '06 FY '05 9 mth 9 mth (Apr. 1, 2005 - Dec. 31, 2005) (Apr. 1, 2004 - Dec. 31, 2004) A/B (%)Business Segment Sales (A) % of Operating Sales (B) % of Operating total income total income Energy and ElectricSystems 535,300 19.2 2,260 467,474 17.8 (1,050) 115Industrial AutomationSystems 629,266 22.5 75,653 588,287 22.4 64,517 107Information andCommunication Systems 414,099 14.8 3,260 384,074 14.6 (9,670) 108Electronic Devices 126,125 4.5 9,188 121,353 4.6 4,124 104Home Appliances 664,307 23.8 18,666 653,008 24.8 27,829 102Others 424,187 15.2 8,745 417,219 15.8 7,082 102Subtotal 2,793,284 100.0 117,772 2,631,415 100.0 92,832 106Eliminations (310,894) - (22,680) (279,630) - (20,758) -Consolidated Total 2,482,390 - 95,092 2,351,785 - 72,074 106 *Note: Inter-segment sales are included in the above chart. Cautionary Statement The expectation of operating results herein and any associated statement to bemade orally with respect to the Company's current plans, estimates, strategiesand 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 wordsand similar expressions are intended to identify forward-looking statementswhich include but are not limited to projections of revenues, earnings,performance and production. While the statements herein are based on certainassumptions and premises that the Company trusts and considers to be reasonableunder the circumstances to the date of announcement, you are requested to kindlytake note that actual operating results are subject to change due to any of thefactors as contemplated hereunder and/or any additional factor unforeseeable asof the date of this announcement. Such factors materially affecting theexpectations expressed herein shall include but are not limited to thefollowing: (1) Any change in worldwide economic and social conditions as well as laws, regulations, taxation and other legislation (2) Changes in foreign currency exchange rates, especially yen/dollar rates (3) Changes in stock markets, especially in Japan (4) Changes in balance of demand and supply of products that may affect prices and volume, as well as material procurement conditions (5) Changes in the ability to acquire financing, especially in Japan (6) Changes in any patent and its licensing, including any dispute involving patent infringement, that may affect operations (7) Technological change, the development of products using new technology, manufacturing and time-to-market (8) Business restructuring About Mitsubishi Electric With over 80 years of experience in providing reliable, high-quality products toboth corporate clients and general consumers all over the world, MitsubishiElectric Corporation (TSE:6503) is a recognized world leader in the manufacture,marketing and sales of electrical and electronic equipment used in informationprocessing and communications, space development and satellite communications,consumer electronics, industrial technology, energy, transportation and buildingequipment. The company recorded consolidated group sales of 3,410 billion yen(US$ 31.9 billion*) in the fiscal year ended March 31, 2005. For moreinformation visit http://global.mitsubishielectric.com *At an exchange rate of 107 yen to the US dollar, the rate given by the TokyoForeign Exchange Market on March 31, 2005. This information is provided by RNS The company news service from the London Stock Exchange