MEL.L Regulatory News (MEL)

2 Feb 2007 08:15

Mitsubishi Electric Corporation02 February 2007 MITSUBISHI ELECTRIC CORPORATION PUBLIC RELATIONS DEPARTMENT 7-3, Marunouchi 2-chome, Chiyoda-ku, Tokyo, 100-8310 Japan FOR IMMEDIATE RELEASE No. 2403Investor Relations Inquiries: Media Contact:Yasumitsu Kugenuma Travis WoodwardCorporate Finance Division Public Relations DivisionMitsubishi 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 2007 Tokyo, February 2, 2007 - Mitsubishi Electric Corporation (President and CEO:Setsuhiro Shimomura) announced today its financial results for the thirdquarter, ending December 31, 2006, of the current fiscal year ending March 31,2007 (fiscal 2007). Consolidated Financial Results Net sales: 871.5 billion yen (4% increase from same quarter last year)Operating income: 63.5 billion yen (30% increase from same quarter last year)Income before income taxes: 64.9 billion yen (37% increase from same quarter last year)Net income: 42.1 billion yen (31% increase from same quarter last year) The business environment during the third quarter of fiscal 2007 saw generalstrengthening undertones in the global economy. The Japanese economy as well sawgeneral strengthening undertones with continued strength in demands for capitalspending, despite a slight weakening in personal spending. Under these circumstances, third quarter net sales rose 4% compared to the sameperiod of the previous fiscal year to 871.5 billion yen due to increased revenuein the Energy and Electric Systems, Industrial Automation Systems, ElectronicDevices, and Home Appliances segments. Operating income increased 30% from thesame quarter last year to 63.5 billion yen due to increased profit in the Energyand Electric Systems, Industrial Automation Systems, and Home Appliancessegments. Consolidated Financial Results by Business Segment Energy and Electric Systems Total sales: 203.2 billion yen (9% increase from same quarter last year)Operating income: 14.8 billion yen (3.1 billion yen increase from same quarter last year) The social infrastructure systems business saw increases in both orders andsales from the same quarter last year due to expansions in domestic powergeneration, transmission, and distribution business, etc. in addition toexpansions in the electric equipment for rolling stock business. Building system business experienced increases in both orders and sales from thesame period last year due to increases in large domestic projects in newelevators and escalators installations and refitting as well as increases ininitiatives in the Middle East and Southeast Asia. As a result, total sales for this segment increased 9% from the same quarterlast year, and operating income increased 3.1 billion yen from the same quarterlast year due to increases in sales, etc. Industrial Automation Systems Total sales: 236.6 billion yen (9% increase from same quarter last year)Operating income: 37.4 billion yen (6.1 billion yen increase from same quarter last year) Factory automation systems business experienced increases in both orders andsales from the same period last year because of increases in domestic andoverseas numerical controllers (NC) for factory automation machinery as well aslaser processing machines for sheet metal, circuit breakers, etc. for thedomestic manufacturing industry. The automotive equipment business saw increases in both orders and sales fromthe same period last year with increases in alternators and starters, etc. forboth domestic and overseas automotive manufacturers. As a result, total salesfor this segment increased by 9% compared to the same period last year.Operating income rose by 6.1 billion yen compared to the same period last yeardue to increase in sales, etc. Information and Communication Systems Total sales: 139.3 billion yen (4% decrease from same quarter last year)Operating income: 4.9 billion yen (2.6 billion yen decrease from same quarter last year) The telecommunications equipment business saw decreases in both orders and salesfrom the same period of the previous fiscal year due to decreases in mobilehandsets. The information system service business saw a decrease in sales from the sameperiod of the previous fiscal year due to reductions in the system integrationbusiness, etc. The electronic system business saw an increase in sales from the same periodlast year due to expansions in satellite related businesses while ordersremained unchanged from the same period last year. As a result, total sales for this segment showed a decrease of 4% from the sameperiod last year. Operating income decreased by 2.6 billion yen from the sameperiod last year due to decreases in sales, etc. Electronic Devices Total sales: 46.1 billion yen (7% increase from same quarter last year)Operating income: 2.7 billion yen (Unchanged from same quarter last year) The semiconductor business saw increases in both orders and sales from the sameperiod last year due to increases in orders for power modules for industrialmachinery and consumer use mainly for air conditioners, power amplifiers for mobile handsets, etc. The liquid crystal business saw decreases in both orders and sales from the sameperiod last year due to a decrease in small-sized consumer use products formobile handsets, etc., despite increases in mid-sized products for industrialmachinery. As a result, total sales for this segment increased by 7% from the same periodof the previous fiscal year. Operating income remained unchanged from the same period of the previous fiscalyear due to price reductions, etc. amid increased sales. Home Appliances Total sales: 210.9 billion yen (4% increase from same quarter last year)Operating income: 10.1 billion yen (8.0 billion yen increase from same quarter last year) The home appliance business saw a 4% increase in sales from the same period lastyear due to increases in air conditioners for the overseas market, solar powergeneration systems, and products for all-electric powered homes like electricwater heaters, etc., despite reductions in air conditioners for the domesticmarket, refrigerators, and DVD players/recorders, etc. Operating income increased by 8.0 billion yen from the same period last year dueto increased sales, etc. Others Total sales: 152.4 billion yen (2% increase from same quarter last year)Operating income: 3.2 billion yen (0.1 billion yen increase from same quarter last year) Sales increased 2% from the same period last year mainly in our affiliatedcompanies involved in such activities as material procurement, engineering, etc.Operating income increased by 0.1 billion yen from the same period last year dueto increased sales, etc. Forecast for Fiscal 2007 (ending March 31,2007) Consolidated Financial Results Net sales: 3,700 billion yen (3% increase year-on-year)Operating income: 180 billion yen (14% increase year-on-year)Income before income taxes: 165 billion yen (8% increase year-on-year)Net income: 120 billion yen (25% increase year-on-year) The forecast for fiscal 2007 remains unchanged from that stated on October 30,2006, announced with the Half-Year Results. Note: The forecast of results above is based on assumptions deemed reasonable bythe Company at the present time, and actual results may differ significantlyfrom forecasts. Please refer to the cautionary statement on the last page. CONSOLIDATED FINANCIAL RESULTS 1. FISCAL 2007, 3rd QUARTER CONSOLIDATED FINANCIAL RESULTS (In billions of yen except where noted) FY '07 FY '06 3rd Q (A) 3rd Q (B) (Oct. 1, 2006 - (Oct. 1, 2005 - A/B Dec. 31, 2006) Dec. 31, 2005) (%) Net sales 871.5 834.5 104Operating income 63.5 49.0 130Income before incometaxes 64.9 47.2 137Net income 42.1 32.2 131Basic net income per share 19.64 yen 15.06 yen 130 2. FISCAL 2007, FIRST 9 MONTH CONSOLIDATED FINANCIAL RESULTS (In billions of yen except where noted) FY '07 FY '06 9 mth (A) 9 mth (B) (Apr. 1, 2006 - (Apr. 1, 2005 - A/B Dec. 31, 2006) Dec. 31, 2005) (%) Net sales 2,663.5 2,482.3 107Operating income 157.1 95.0 165Income before incometaxes 147.4 97.9 150Net income 98.6 61.3 161Basic net income per share 45.96 yen 28.65 yen 160 Note: 1) Consolidated financial charts made according to U.S. GAAP. 2) Company has 148 consolidated subsidiaries. 3) This report is unaudited. CONSOLIDATED PROFIT AND LOSS STATEMENT Fiscal 2007, 3rd Quarter (In millions of yen) Comparison FY '07 FY'06 to same 3rd Q (A) 3rd Q (B) quarter (Oct. 1, % of (Oct.1, % of last A/B 2006 - Dec. total 2005 - Dec. total year (%) 31, 2006) 31, 2005) (A-B) Net sales 871,533 100.0 834,560 100.0 36,973 104Cost of sales 624,617 71.7 608,316 72.9 16,301 103Selling, general andadministrative expenses 183,340 21.0 177,152 21.2 6,188 103Operating income 63,576 7.3 49,092 5.9 14,484 130Other income 7,667 0.9 6,992 0.8 675 110 Interest and Dividends 2,883 0.3 2,481 0.3 402 116 Other 4,784 0.6 4,511 0.5 273 106Other expenses 6,313 0.7 8,822 1.0 (2,509) 72 Interest 2,180 0.2 2,564 0.3 (384) 85 Other 4,133 0.5 6,258 0.7 (2,125) 66Income before income taxes 64,930 7.5 47,262 5.7 17,668 137Income taxes 26,058 3.0 20,038 2.4 6,020 130Equity in earnings ofaffiliated companies 3,291 0.3 5,063 0.6 (1,772) 65Net income 42,163 4.8 32,287 3.9 9,876 131 CONSOLIDATED PROFIT AND LOSS STATEMENT Fiscal 2007, First 9 Months (In millions of yen) Comparison FY '07 FY'06 to same 9 mth (A) 9 mth (B) period (Apr. 1, % of (Apr.1, % of last A/B 2006 - Dec. total 2005 - Dec. total year (%) 31, 2006) 31, 2005) (A-B) Net sales 2,663,515 100.0 2,482,390 100.0 181,125 107Cost of sales 1,936,459 72.7 1,843,917 74.3 92,542 105Selling, general andadministrative expenses 569,874 21.4 543,381 21.9 26,493 105Operating income 157,182 5.9 95,092 3.8 62,090 165Other income 24,228 0.9 34,540 1.4 (10,312) 70 Interest and Dividends 9,208 0.3 7,302 0.3 1,906 126 Other 15,020 0.6 27,238 1.1 (12,218) 55Other expenses 34,006 1.3 31,645 1.3 2,361 107 Interest 7,256 0.3 7,353 0.3 (97) 99 Other 26,750 1.0 24,292 1.0 2,458 110Income before incometaxes 147,404 5.5 97,987 3.9 49,417 150Income taxes 59,708 2.2 47,647 1.8 12,061 125Equity in earnings ofaffiliated companies 10,959 0.4 11,053 0.4 (94) 99Net income 98,655 3.7 61,393 2.5 37,262 161 CONSOLIDATED BALANCE SHEET (In millions of yen) FY '07 FY '07 3rd Q (A) 1st Half (B) FY '06 (ending Dec. (ending Sep. A -B (ending Mar. 31, 2006) 30, 2006) 31, 2006)(Assets)Current assets 1,942,432 1,882,872 59,560 1,886,779Cash and cash equivalents 269,310 347,055 (77,745) 304,514Short-term investments 5,601 9,138 (3,537) 7,991Trade receivables 732,759 741,541 (8,782) 843,600Inventories 651,992 544,115 107,877 491,950Prepaid expenses and other current assets 282,770 241,023 41,747 238,724Long-term receivables 3,753 3,671 82 4,378Investments 570,639 565,229 5,410 584,871Net property, plant and equipment 602,700 601,742 958 589,998Other assets 245,709 255,914 (10,205) 247,716Total assets 3,365,233 3,309,428 55,805 3,313,742 (Liabilities and shareholders' equity)Current liabilities 1,429,838 1,376,798 53,040 1,440,133Bank loans and current portionof long-term debt 240,972 218,697 22,275 247,595Trade payables 675,373 652,866 22,507 714,455Other current liabilities 513,493 505,235 8,258 478,083Long-term debt 425,894 460,419 (34,525) 445,583Retirement and severance benefits 425,930 441,868 (15,938) 420,348Other fixed liabilities 12,856 12,630 226 13,081Minority interests 59,758 57,493 2,265 52,395Shareholders' equity 1,010,957 960,220 50,737 942,202Common stock 175,820 175,820 - 175,820Capital surplus 210,924 210,927 (3) 210,938Retained earnings 607,578 574,001 33,577 528,240Accumulated other comprehensiveincome (loss) 17,116 (74) 17,190 27,718Treasury stock at cost (481) (454) (27) (514)Total liabilities and shareholders' equity 3,365,233 3,309,428 55,805 3,313,742 Balance of Debt 666,866 679,116 (12,250) 693,178 Accumulated other comprehensive income (loss):Foreign currency translation adjustments 23,810 12,230 11,580 9,426Minimum pension liability adjustments (72,562) (79,141) 6,579 (58,695)Unrealized gains on securities 65,852 66,869 (1,017) 76,970Unrealized gains (losses) on derivative instruments 16 (32) 48 17 CONSOLIDATED CASH FLOW STATEMENT Fiscal 2007, 3rd Quarter (In millions of yen) FY '07 FY '06 3rd Q (A) 3rd Q (B) (Oct. 1, 2006 - (Oct. 1, 2005 - A/B Dec. 31, 2006) Dec. 31, 2005) I Cash flows from operating activities 1 Net income 42,163 32,287 9,876 2 Adjustments to reconcile net income to net cash provided by operating activities (1) Depreciation of tangible fixed assets and other 32,965 32,895 70 (2) Decrease (increase) in trade receivables 13,986 (8,765) 22,751 (3) Decrease (increase) in inventories (101,732) (81,429) (20,303) (4) Increase in trade payables 19,796 44,696 (24,900) (5) Other, net (26,588) 5,196 (31,784) Net cash provided by (used in) operating activities (19,410) 24,880 (44,290) II Cash flows from investing activities 1 Capital expenditure (25,061) (29,385) 4,324 2 Proceeds from sale of property, plant and equipment 1,012 1,390 (378) 3 Purchase of short-term investments and investment securities (3,568) (12,115) 8,547 4 Proceeds from sale of short-term investments and investment securities 7,648 3,908 3,740 5 Other, net (15,976) 1,990 (17,966) Net cash used in investing activities (35,945) (34,212) (1,733) I + II Free cash flow (55,355) (9,332) (46,023) III Cash flows from financing activities 1 Proceeds from long-term debt 15,100 46,390 31,290 2 Repayment of long-term debt (105,534) (49,936) (55,598) 3 Increase in bank loans, net 71,253 51,852 19,401 4 Dividends paid (8,586) (6,416) (2,170) 5 Purchase of treasury stock (45) (70) 25 6 Reissuance of treasury stock 15 48 (33) Net cash provided by (used in) financing activities (27,797) 41,868 (69,665) IV Effect of exchange rate changes on cash and cash equivalents 5,407 4,190 1,217 V Net increase (decrease) in cash and cash equivalents (77,745) 36,726 (114,471) VI Cash and cash equivalents at beginning of period 347,055 252,335 94,720 VII Cash and cash equivalents at the end of period 269,310 289,061 (19,751) CONSOLIDATED CASH FLOW STATEMENT Fiscal 2007, First 9 Months (In millions of yen) FY '07 FY '06 9 mth (A) 9 mth (B) (Apr. 1, 2006 - (Apr. 1, 2005 - A/B Dec. 31, 2006) Dec. 31, 2005) I Cash flows from operating activities 1 Net income 98,655 61,393 37,262 2 Adjustments to reconcile net income to net cash provided by operating activities (1) Depreciation of tangible fixed assets and other 100,878 83,730 17,148 (2) Decrease in trade receivables 119,962 108,985 10,977 (3) Decrease (increase) in inventories (150,648) (112,027) (38,621) (4) Increase (decrease) in trade payables (43,024) (22,234) (20,790) (5) Other, net 3,505 48,484 (44,979) Net cash provided by operating activities 129,328 168,331 (39,003) II Cash flows from investing activities 1 Capital expenditure (95,296) (89,408) (5,888) 2 Proceeds from sale of property, plant and equipment 4,037 3,369 668 3 Purchase of short-term investments and investment securities (18,754) (30,052) 11,298 4 Proceeds from sale of short-term investments and investment securities 23,050 21,792 1,258 5 Other, net (25,058) (24,113) (945) Net cash used in investing activities (112,021) (118,412) 6,391 I + II Free cash flow 17,307 49,919 (32,612) III Cash flows from financing activities 1 Proceeds from long-term debt 32,200 58,660 (26,460) 2 Repayment of long-term debt (145,539) (86,646) (58,893) 3 Increase in bank loans, net 71,584 33,321 38,263 4 Dividends paid (19,317) (15,000) (4,317) 5 Purchase of treasury stock (95) (4,556) 4,461 6 Reissuance of treasury stock 114 105 9 7 Other, net 2,107 - 2,107 Net cash provided by (used in) financing activities (58,946) (14,116) (44,830) IV Effect of exchange rate changes on cash and cash equivalents 6,435 6,695 (260) V Net increase (decrease) in cash and cash equivalents (35,204) 42,498 (77,702) VI Cash and cash equivalents at beginning of period 304,514 246,563 57,951 VII Cash and cash equivalents at the end of period 269,310 289,061 (19,751) CONSOLIDATED SEGMENT INFORMATION Fiscal 2007, 3rd Quarter Sales and Operating Income by Business Segment (In millions of yen) FY '07 FY '06 3rd Q 3rd Q (Oct. 1, 2006 - Dec. 31, 2006) (Oct. 1, 2005 - Dec. 31, 2005) A/B (%)Business Segment Sales (A) % of Operating Sales (B) % of Operating total income total income Energy and ElectricSystems 203,265 20.6 14,817 187,315 19.9 11,697 109 Industrial AutomationSystems 236,632 23.9 37,423 216,268 22.9 31,311 109 Information andCommunication Systems 139,370 14.1 4,912 145,461 15.4 7,537 96 Electronic Devices 46,134 4.7 2,764 43,206 4.6 2,722 107Home Appliances 210,941 21.3 10,145 202,366 21.4 2,056 104 Others 152,412 15.4 3,283 148,829 15.8 3,158 102Subtotal 988,754 100.0 73,344 943,445 100.0 58,481 105Eliminations (117,221) - (9,768) (108,885) - (9,389) -Consolidated Total 871,533 - 63,576 834,560 - 49,092 104 *Note: Inter-segment sales are included in the above chart. CONSOLIDATED SEGMENT INFORMATION Fiscal 2007, First 9 Months Sales and Operating Income by Business Segment (In millions of yen) FY '07 FY '06 9 mth 9 mth (Apr. 1, 2006 - Dec. 31, 2006) (Apr. 1, 2005 - Dec. 31, 2005) A/B (%)Business Segment Sales (A) % of Operating Sales (B) % of Operating total income total income Energy and ElectricSystems 594,570 19.7 21,530 535,300 19.2 2,260 111 Industrial AutomationSystems 702,926 23.3 102,582 629,266 22.5 75,653 112 Information andCommunication Systems 444,307 14.8 10,204 414,099 14.8 3,260 107Electronic Devices 137,771 4.6 9,970 126,125 4.5 9,188 109 Home Appliances 675,920 22.5 25,582 664,307 23.8 18,666 102Others 453,229 15.1 9,761 424,187 15.2 8,745 107Subtotal 3,008,723 100.0 179,629 2,793,284 100.0 117,772 108 Eliminations (345,208) - (22,447) (310,894) - (22,680) -Consolidated Total 2,663,515 - 157,182 2,482,390 - 95,092 107 *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 areforward-looking statements. Words such as "expects", "anticipates", "plans","believes", "scheduled", "estimated", "targeted" along with any variations ofthese words and similar expressions are intended to identify forward-lookingstatements which include but are not limited to projections of revenues,earnings, performance and production. While the statements herein are based oncertain assumptions and premises that the Company trusts and considers to bereasonable under the circumstances to the date of announcement, you arerequested to kindly take note that actual operating results are subject tochange due to any of the factors as contemplated hereunder and/or any additionalfactor unforeseeable as of the date of this announcement. Such factorsmaterially affecting the expectations expressed herein shall include but are notlimited to the following: (1) Important trends The Mitsubishi Electric Group's operations may be affected by trends in theglobal economy, social conditions, laws, tax codes, and regulations. (2) Foreign currency exchange rates Fluctuations in foreign currency markets may affect Mitsubishi Electric's salesof exported products and purchases of imported materials that are denominated inU.S. dollars or euros, as well as its Asian production bases' sales of exportedproducts and purchases of imported materials that are denominated in foreigncurrencies. (3) Stock markets A fall in stock market prices may cause Mitsubishi Electric to recorddevaluation losses on marketable securities, or cause an increase in retirementbenefit obligations in accordance with a decline in the fair value of pensionassets. (4) Supply/demand balance for products and procurement conditions for materialsand components A decline in prices and shipments due to changes in the supply/demand balancemay adversely affect mainly Mitsubishi Electric's Information and CommunicationSystems, Electronic Devices, and Home Appliances segments. In addition, anincrease in material prices due to a worsening of material and componentprocurement conditions may adversely affect all of Mitsubishi Electric'soperations. (5) Fund procurement An increase in interest rates, the yen interest rate in particular, wouldincrease Mitsubishi Electric's interest expenses. (6) Significant patent matters Important patent filings, licensing, copyrights and patent-related disputes mayadversely affect related businesses. (7) Litigation and other legal proceedings The Mitsubishi Electric Group's operations may be affected by lawsuits or otherlegal proceedings against Mitsubishi Electric, its subsidiaries and/orequity-method affiliated companies. (8) Disruptive changes Disruptive changes in technology, development of products using new technology,timing of production, and market introduction may adversely affect performancemainly in Mitsubishi Electric's Information and Communication Systems,Electronic Devices, and Home Appliances segments. (9) Business restructuring The Mitsubishi Electric Group may record losses due to restructuring measures. (10) Natural disasters The Mitsubishi Electric Group's operations, particularly manufacturingactivities, may be affected by the occurrence of earthquakes, typhoons, tsunami, fires and other large-scaledisasters. (11) Other significant factorsThe Mitsubishi Electric Group's operations may be affected by the outbreak ofsocial or political upheaval due to terrorism, war or other factors. 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 3,604 billion yen(US$ 30.8billion*) in the fiscal year ended March 31, 2006. For more informationvisit http://global.mitsubishielectric.com *At an exchange rate of 117 yen to the US dollar, the rate given by the TokyoForeign Exchange Market on March 31,2006. This information is provided by RNS The company news service from the London Stock Exchange