2 Feb 2016 07:00
http://www.rns-pdf.londonstockexchange.com/rns/7220N_-2016-2-2.pdf
FOR IMMEDIATE RELEASE | No. 2989 |
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Mitsubishi Electric Corporation | Mitsubishi Electric Corporation |
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Mitsubishi Electric Announces Consolidated Financial Resultsfor the First 9 Months and Third Quarter of Fiscal 2016
TOKYO, February 2, 2016 - Mitsubishi Electric Corporation (TOKYO: 6503) announced today its financial results for the first 9 months and third quarter ended December 31, 2015, of the current fiscal year ending March 31, 2016 (fiscal 2016).
1. Consolidated First 9 Months Results (April 1, 2015 - December 31, 2015)
Net sales: | 3,091.6 billion yen | (4% increase from the same period last year) |
Operating income: | 207.3 billion yen | (3% increase from the same period last year) |
Income before income taxes: | 218.7 billion yen | (1% decrease from the same period last year) |
Net income attributable to Mitsubishi Electric Corp.: | 152.8 billion yen | (5% increase from the same period last year) |
In the first 9 months of fiscal 2016, the business environment experienced buoyancy in the U.S. economy, which showed expansion, and a gradual trend of economic recovery continuing in Europe, despite a gradual slowdown continuing in China and other east Asian markets, weakness in personal consumption in Japan and stagnation in certain emerging markets. In addition, the yen weakened against the U.S. dollar compared to the previous year.
Under these circumstances, consolidated net sales for the first 9 months of fiscal 2016 increased by 4% compared to the same period of the previous fiscal year to 3,091.6 billion yen, with increased sales in the Energy and Electric Systems, Industrial Automation Systems, Electronic Devices and Home Appliances segments. Consolidated operating income increased by 3% compared to the same period of the previous fiscal year to 207.3 billion yen, due to increased profits in the Industrial Automation Systems, Electronic Devices and Home Appliances segments.
Consolidated Financial Results by Business Segment (First 9 months, Fiscal 2016)
Energy and Electric Systems
Total sales: | 808.6 billion yen | (4% increase from the same period last year) |
Operating income: | 18.3 billion yen | (14.1 billion yen decrease from the same period last year) |
The social infrastructure systems business saw increases both in orders and sales compared to the same period of the previous fiscal year due to increases in the power systems business and the transportation systems business in Japan, and also due to the weaker yen, despite decreases in the public utility systems business in Japan and the transportation systems business outside Japan.
The building systems business experienced increases both in orders and sales compared to the same period of the previous fiscal year, owing to growth in the new installation of elevators and escalators outside Japan and the renewal business in Japan, as well as the weaker yen.
As a result, total sales for this segment increased by 4% from the same period of the previous fiscal year. Operating income decreased by 14.1 billion yen from the same period of the previous fiscal year due primarily to a shift in project portfolios and lower profit in the social infrastructure systems business.
Industrial Automation Systems
Total sales: | 988.7 billion yen | (6% increase from the same period last year) |
Operating income: | 127.1 billion yen | (18.9 billion yen increase from the same period last year) |
The factory automation systems business saw a decrease in orders from the same period of the previous fiscal year mainly due to stagnant capital expenditures in China and other emerging markets, while sales experienced an increase from the same period of the previous fiscal year due to growth in capital expenditures relating to the automotive industry and facility replacements by manufacturers in Japan, and due additionally to the weaker yen.
The automotive equipment business saw increases in both orders and sales from the same period of the previous fiscal year due primarily to growth in the car sales market in North America and Europe, as well as the positive influence of the weaker yen.
As a result, total sales for this segment increased by 6% from the same period of the previous fiscal year. Operating income increased by 18.9 billion yen from the same period of the previous fiscal year due primarily to an increase in sales.
Information and Communication Systems
Total sales: | 363.8 billion yen | (3% decrease from the same period last year) |
Operating income: | 4.4 billion yen | (8.5 billion yen decrease from the same period last year) |
The telecommunications equipment business saw decreases in both orders and sales from the same period of the previous fiscal year due primarily to a decrease in demand for communications infrastructure products.
The information systems and service business saw an increase in sales compared to the same period of the previous fiscal year, mainly owing to an increase in the system integrations business.
The electronic systems business saw an increase in orders compared to the same period of the previous fiscal year, while sales experienced a decrease compared to the same period of the previous fiscal year due to a shift in the portfolio of 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 decreased by 8.5 billion yen from the same period of the previous fiscal year due primarily to a decrease in sales.
Electronic Devices
Total sales: | 166.1 billion yen | (3% increase from the same period last year) |
Operating income: | 18.9 billion yen | (2.9 billion yen increase from the same period last year) |
The electronic devices business saw a decrease in orders from the same period of the previous fiscal year due to a decrease in demand mainly for power modules used in railcar, industrial and consumer applications. Sales experienced an increase from the same period of the previous fiscal year due to an increase primarily in automotive-use power modules and optical communication devices, and additionally due to the weaker yen.
As a result, total sales for this segment increased by 3% compared to the same period of the previous fiscal year. Operating income increased by 2.9 billion yen compared to the same period of the previous fiscal year due primarily to an increase in sales.
Home Appliances
Total sales: | 731.3 billion yen | (6% increase from the same period last year) |
Operating income: | 48.1 billion yen | (7.0 billion yen increase from the same period last year) |
The home appliances business saw an increase in sales of 6% compared to the same period of the previous fiscal year due to an increase in sales of residential and industrial air conditioners and refrigerators in Japan, as well as air conditioners for Europe, Asia and North America. The weaker yen also brought about a positive influence.
Operating income increased by 7.0 billion yen compared to the same period of the previous fiscal year largely due to an increase in sales.
Others
Total sales: | 509.6 billion yen | (5% decrease from the same period last year) |
Operating income: | 13.6 billion yen | (0.2 billion yen decrease from the same period last year) |
Sales decreased by 5% compared to the same period of the previous fiscal year due to decreases mainly at affiliated companies involved in materials procurement.
Operating income decreased by 0.2 billion yen from the same period of the previous fiscal year due primarily to a decrease in sales.
2. Consolidated Third-quarter Results (October 1, 2015 - December 31, 2015)
Net sales: | 1,028.3 billion yen | (2% increase from the same period last year) |
Operating income: | 80.3 billion yen | (Unchanged from the same period last year) |
Income before income taxes: | 85.6 billion yen | (15% increase from the same period last year) |
Net income attributable to Mitsubishi Electric Corp.: | 59.8 billion yen | (25% increase from the same period last year) |
Consolidated net sales for this quarter increased by 2% compared to the same period of the previous fiscal year to 1,028.3 billion yen due to increased sales in the Energy and Electric Systems, Industrial Automation Systems, Information and Communication Systems and Home Appliances segments. Consolidated operating income was 80.3 billion yen, remaining substantially unchanged from the same period of the previous fiscal year with increased profits in the Industrial Automation Systems, Information and Communication Systems and Home Appliances segments, despite decreased profits in the Energy and Electric Systems and Electronic Devices segments.
Consolidated Financial Results by Business Segment (Third Quarter, Fiscal 2016)
Energy and Electric Systems
Total sales: | 284.8 billion yen | (3% increase from the same period last year) |
Operating income: | 14.6 billion yen | (5.4 billion yen decrease from the same period last year) |
The social infrastructure systems business saw increases both in orders and sales compared to the same period of the previous fiscal year due to an increase in the power systems business in Japan, despite a decrease in orders and sales of the transportations systems business outside Japan.
The building systems business experienced an increase in orders compared to the same period of the previous fiscal year due primarily to an increase in the new installation of elevators outside Japan, while sales remained substantially unchanged compared to the same period of the previous fiscal year.
As a result, total sales for this segment increased by 3% from the same period of the previous fiscal year. Operating income decreased 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: | 327.2 billion yen | (1% increase from the same period last year) |
Operating income: | 43.2 billion yen | (1.3 billion yen increase from the same period last year) |
The factory automation systems business saw decreases in both orders and sales from the same period of the previous fiscal year mainly due to stagnant capital expenditures in China and other emerging markets, despite buoyant demand in capital expenditures relating to the automotive industry.
The automotive equipment business saw increases in both orders and sales from the same period of the previous fiscal year due primarily to growth in the car sales market in North America and Europe.
As a result, total sales for this segment increased by 1% from the same period of the previous fiscal year. Operating income increased by 1.3 billion yen from the same period of the previous fiscal year due primarily to an increase in sales.
Information and Communication Systems
Total sales: | 139.8 billion yen | (10% increase from the same period last year) |
Operating income: | 8.2 billion yen | (0.6 billion yen increase from the same period last year) |
The telecommunications equipment business saw decreases in both orders and sales from the same period of the previous fiscal year due primarily to a decrease in demand for communications infrastructure products.
The information systems and service business saw an increase in sales compared to the same period of the previous fiscal year, mainly owing to an increase in the system integrations business.
The electronic systems business saw increases in both orders and sales compared to the same period of the previous fiscal year owing to a new order received for a large-scale project in the defense systems business, as well as sales recorded for a large-scale project in the space systems business.
As a result, total sales for this segment increased by 10% compared to the same period of the previous fiscal year. Operating income increased by 0.6 billion yen from the same period of the previous fiscal year due primarily to an increase in sales.
Electronic Devices
Total sales: | 42.9 billion yen | (22% decrease from the same period last year) |
Operating income: | 2.6 billion yen | (5.6 billion yen decrease from the same period last year) |
The electronic devices business saw decreases in both orders and sales from the same period of the previous fiscal year due to a decrease in demand mainly for power modules used in automotive, railcar, industrial and consumer applications, despite increases in orders and sales primarily for optical communication devices.
As a result, total sales for this segment decreased by 22% compared to the same period of the previous fiscal year. Operating income decreased by 5.6 billion yen compared to the same period of the previous fiscal year due primarily to a decrease in sales.
Home Appliances
Total sales: | 220.1 billion yen | (4% increase from the same period last year) |
Operating income: | 14.9 billion yen | (9.0 billion yen increase from the same period last year) |
The home appliances business saw an increase in sales of 4% compared to the same period of the previous fiscal year due to an increase in sales of residential and industrial air conditioners and refrigerators in Japan, as well as air conditioners for Europe and North America.
Operating income increased by 9.0 billion yen compared to the same period of the previous fiscal year largely due to an increase in sales.
Others
Total sales: | 171.1 billion yen | (7% decrease from the same period last year) |
Operating income: | 6.3 billion yen | (0.6 billion yen increase from the same period last year) |
Sales decreased by 7% compared to the same period of the previous fiscal year due to decreases mainly at affiliated companies involved in materials procurement.
Operating income increased by 0.6 billion yen from the same period of the previous fiscal year.
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 111.0 billion yen to 3,948.3 billion yen. The change in the balance of total assets is mainly due to a decrease in the balances of cash and cash equivalents of 90.5 billion yen and a decrease in trade receivables of 186.6 billion yen resulting from various factors including credit collection, while work-in-process to be recorded in commensurate with progress in job orders under pertinent contracts increased by 77.1 billion yen.
Total liabilities decreased from the end of the previous fiscal year by 191.6 billion yen to 1,937.6 billion yen due to decreases mainly in the outstanding balance of trade payables of 133.4 billion yen and in other current liabilities of 90.0 billion yen. The outstanding balances of debts and corporate bonds increased by 22.7 billion yen from the end of the previous fiscal year to 404.7 billion yen. The ratio of interest bearing debt to total assets rose to 10.3%, which was a 0.9 point increase compared to the end of the previous fiscal year.
Mitsubishi Electric Corporation shareholders' equity increased by 50.6 billion yen compared to the end of the previous fiscal year to 1,892.8 billion yen. Shareholders' equity ratio, representing a 2.5 point increase compared to the end of the previous fiscal year, was recorded as 47.9%. The changes referred to above are primarily resulting from a recorded net income attributable to Mitsubishi Electric Corporation of 152.8 billion yen, despite a dividend payment of 57.9 billion yen and a decrease in accumulated other comprehensive income of 44.1 billion yen backed by such factors as currencies of the emerging markets weakening against the yen compared to the end of the previous fiscal year.
Cash flows from operating activities decreased by 25.0 billion yen compared to the same period of the previous fiscal year to 165.4 billion yen (cash in), resulting primarily from a decrease in advance payments. Cash flows from investing activities increased by 46.6 billion yen compared to the same period of the previous fiscal year to 189.2 billion yen (cash out) resulting primarily from an increase in purchases of short-term investments and investment securities. Consequently, free cash flow totaled 23.7 billion yen (cash out). Cash flows from financing activities were 55.1 billion yen (cash out) mainly due to dividend payments.
Forecast for Fiscal 2016 (year ending March 31, 2016)
The consolidated earnings forecast for fiscal 2016, ending March 31, 2016, has not been changed from the previous forecast announced on October 29, 2015.
Consolidated earnings forecast for fiscal 2016
Current forecast |
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Net sales: | 4,380.0 billion yen | (1% increase from fiscal 2015) |
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Operating income: | 300.0 billion yen | (6% decrease from fiscal 2015) |
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Income before income taxes: | 315.0 billion yen | (2% decrease from fiscal 2015) |
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Net income attributable to Mitsubishi Electric Corp.: | 220.0 billion yen | (6% decrease from fiscal 2015) |
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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 First 9 Months Results
(In billions of yen except where noted)
FY '15 9 months (A)(Apr. 1, 2014 - Dec. 31, 2014) | FY '16 9 months (B)(Apr. 1, 2015 - Dec. 31, 2015) | |||
B - A | B/A (%) | |||
Net sales | 2,983.2 | 3,091.6 | 108.3 | 104 |
Operating income | 201.3 | 207.3 | 5.9 | 103 |
Income before income taxes | 220.6 | 218.7 | (1.9) | 99 |
Net income attributable to Mitsubishi Electric Corp. | 145.6 | 152.8 | 7.1 | 105 |
Basic net income per share attributable to Mitsubishi Electric Corp. | 67.82 yen | 71.18 yen | 3.36 yen | 105 |
2. Consolidated Third-quarter Results
(In billions of yen except where noted)
FY '15 Q3 (A)(Oct. 1, 2014 -Dec. 31, 2014) | FY '16 Q3 (B)(Oct. 1, 2015 - Dec. 31, 2015) | |||
B - A | B/A (%) | |||
Net sales | 1,010.4 | 1,028.3 | 17.9 | 102 |
Operating income | 79.9 | 80.3 | 0.3 | 100 |
Income before income taxes | 74.7 | 85.6 | 10.9 | 115 |
Net income attributable to Mitsubishi Electric Corp. | 47.7 | 59.8 | 12.1 | 125 |
Basic net income per share attributable to Mitsubishi Electric Corp. | 22.24 yen | 27.89 yen | 5.65 yen | 125 |
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 9 Months, Fiscal 2016)
(In millions of yen)
FY '15 9 months (Apr. 1, 2014 - Dec. 31, 2014) | FY '16 9 months (Apr. 1, 2015 - Dec. 31, 2015) | ||||||
B - A | B/A (%) | ||||||
(A) | % of total | (B) | % of total | ||||
Net sales | 2,983,261 | 100.0 | 3,091,608 | 100.0 | 108,347 | 104 | |
Cost of sales | 2,080,560 | 69.7 | 2,142,075 | 69.3 | 61,515 | 103 | |
Selling, general and administrative expenses | 699,831 | 23.5 | 738,214 | 23.9 | 38,383 | 105 |
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Loss on impairment of long-lived assets | 1,532 | 0.1 | 4,004 | 0.1 | 2,472 | 261 | |
Operating income | 201,338 | 6.7 | 207,315 | 6.7 | 5,977 | 103 | |
Other income | 59,769 | 2.0 | 41,027 | 1.3 | (18,742) | 69 | |
Interest and dividends | 6,103 | 0.2 | 6,384 | 0.2 | 281 | 105 | |
Equity in earnings of affiliated companies | 19,998 | 0.7 | 20,102 | 0.6 | 104 | 101 | |
Other | 33,668 | 1.1 | 14,541 | 0.5 | (19,127) | 43 | |
Other expenses | 40,454 | 1.3 | 29,599 | 0.9 | (10,855) | 73 | |
Interest | 2,855 | 0.1 | 2,670 | 0.1 | (185) | 94 | |
Other | 37,599 | 1.2 | 26,929 | 0.8 | (10,670) | 72 | |
Income before income taxes | 220,653 | 7.4 | 218,743 | 7.1 | (1,910) | 99 | |
Income taxes | 66,299 | 2.2 | 56,000 | 1.8 | (10,299) | 84 | |
Net income | 154,354 | 5.2 | 162,743 | 5.3 | 8,389 | 105 | |
Net income attributable to the noncontrolling interests | 8,750 | 0.3 | 9,941 | 0.4 | 1,191 | 114 | |
Net income attributable to Mitsubishi Electric Corp. | 145,604 | 4.9 | 152,802 | 4.9 | 7,198 | 105 | |
Consolidated Comprehensive Income Statement (First 9 Months, Fiscal 2016)
(In millions of yen)
FY '15 9 months (A) (Apr. 1, 2014 - Dec. 31, 2014) | FY '16 9 months (B) (Apr. 1, 2015 - Dec. 31, 2015) | B - A | ||
Net income | 154,354 | 162,743 | 8,389 | |
Other comprehensive income (loss), net of tax | ||||
Foreign currency translation adjustments | 71,544 | (36,930) | (108,474) | |
Pension liability adjustments | 35,670 | (8,267) | (43,937) | |
Unrealized gains (losses) on securities | 22,876 | (3,215) | (26,091) | |
Unrealized gains on derivative instruments | 3 | 31 | 28 | |
Total | 130,093 | (48,381) | (178,474) | |
Comprehensive income | 284,447 | 114,362 | (170,085) | |
Comprehensive income attributable to the noncontrolling interests | 16,043 | 5,719 | (10,324) | |
Comprehensive income attributable to Mitsubishi Electric Corp. | 268,404 | 108,643 | (159,761) | |
Consolidated Profit and Loss Statement (Third Quarter, Fiscal 2016)
(In millions of yen)
FY '15 Q3 (Oct. 1, 2014 - Dec. 31, 2014) | FY '16 Q3 (Oct. 1, 2015 - Dec. 31, 2015) | ||||||
B - A | B/A (%) | ||||||
(A) | % of total | (B) | % of total | ||||
Net sales | 1,010,423 | 100.0 | 1,028,323 | 100.0 | 17,900 | 102 | |
Cost of sales | 698,453 | 69.1 | 709,305 | 69.0 | 10,852 | 102 | |
Selling, general and administrative expenses | 231,190 | 22.9 | 238,717 | 23.2 | 7,527 | 103 | |
Loss on impairment of long-lived assets | 833 | 0.1 | - | - | (833) | - | |
Operating income | 79,947 | 7.9 | 80,301 | 7.8 | 354 | 100 | |
Other income | 19,513 | 1.9 | 14,454 | 1.4 | (5,059) | 74 | |
Interest and dividends | 1,833 | 0.2 | 2,105 | 0.2 | 272 | 115 | |
Equity in earnings of affiliated companies | 7,844 | 0.8 | 6,841 | 0.7 | (1,003) | 87 | |
Other | 9,836 | 0.9 | 5,508 | 0.5 | (4,328) | 56 | |
Other expenses | 24,733 | 2.4 | 9,070 | 0.9 | (15,663) | 37 | |
Interest | 892 | 0.1 | 840 | 0.1 | (52) | 94 | |
Other | 23,841 | 2.3 | 8,230 | 0.8 | (15,611) | 35 | |
Income before income taxes | 74,727 | 7.4 | 85,685 | 8.3 | 10,958 | 115 | |
Income taxes | 23,132 | 2.3 | 22,075 | 2.1 | (1,057) | 95 | |
Net income | 51,595 | 5.1 | 63,610 | 6.2 | 12,015 | 123 | |
Net income attributable to the noncontrolling interests | 3,845 | 0.4 | 3,733 | 0.4 | (112) | 97 | |
Net income attributable to Mitsubishi Electric Corp. | 47,750 | 4.7 | 59,877 | 5.8 | 12,127 | 125 | |
Consolidated Comprehensive Income Statement (Third Quarter, Fiscal 2016)
(In millions of yen)
FY '15 Q3 (A) (Oct. 1, 2014 - Dec. 31, 2014) | FY '16 Q3 (B) (Oct. 1, 2015 - Dec. 31, 2015) | B - A | ||
Net income | 51,595 | 63,610 | 12,015 | |
Other comprehensive income (loss), net of tax | ||||
Foreign currency translation adjustments | 51,593 | (4,472) | (56,065) | |
Pension liability adjustments | 17,496 | 17,710 | 214 | |
Unrealized gains (losses) on securities | (389) | 26,938 | 27,327 | |
Unrealized gains on derivative instruments | 15 | 48 | 33 | |
Total | 68,715 | 40,224 | (28,491) | |
Comprehensive income | 120,310 | 103,834 | (16,476) | |
Comprehensive income attributable to the noncontrolling interests | 8,695 | 3,483 | (5,212) | |
Comprehensive income attributable to Mitsubishi Electric Corp. | 111,615 | 100,351 | (11,264) | |
Consolidated Balance Sheet
(In millions of yen)
FY '15 (A) (ended Mar. 31, 2015) | FY ' 16 9 months (B) (ended Dec. 31, 2015) | B - A | |
(Assets) Current assets | 2,633,445 | 2,432,410 | (201,035) |
Cash and cash equivalents | 568,517 | 478,011 | (90,506) |
Trade receivables | 1,048,542 | 863,514 | (185,028) |
Inventories | 705,420 | 782,528 | 77,108 |
Prepaid expenses and other current assets | 310,966 | 308,357 | (2,609) |
Long-term trade receivables | 5,633 | 4,038 | (1,595) |
Investments | 595,828 | 599,206 | 3,378 |
Net property, plant and equipment | 706,475 | 703,744 | (2,731) |
Other assets | 118,070 | 208,968 | 90,898 |
Total assets | 4,059,451 | 3,948,366 | (111,085) |
(Liabilities) Current liabilities | 1,612,582 | 1,349,938 | (262,644) |
Bank loans and current portion of long-term debt | 164,402 | 125,298 | (39,104) |
Trade payables | 807,289 | 673,838 | (133,451) |
Other current liabilities | 640,891 | 550,802 | (90,089) |
Long-term debt | 217,592 | 279,439 | 61,847 |
Retirement and severance benefits | 182,282 | 180,929 | (1,353) |
Other fixed liabilities | 116,828 | 127,348 | 10,520 |
Total liabilities | 2,129,284 | 1,937,654 | (191,630) |
(Equity) Mitsubishi Electric Corp. shareholders' equity | 1,842,203 | 1,892,847 | 50,644 |
Common stock | 175,820 | 175,820 | - |
Capital surplus | 211,155 | 211,155 | - |
Retained earnings | 1,331,496 | 1,426,335 | 94,839 |
Accumulated other comprehensive income (loss) | 124,064 | 79,905 | (44,159) |
Treasury stock at cost | (332) | (368) | (36) |
Noncontrolling interests | 87,964 | 117,865 | 29,901 |
Total equity | 1,930,167 | 2,010,712 | 80,545 |
| Total liabilities and equity | 4,059,451 | 3,948,366 | (111,085) |
Balance of Debt | 381,994 | 404,737 | 22,743 |
Accumulated other comprehensive income (loss): | |||
Foreign currency translation adjustments | 102,959 | 70,394 | (32,565) |
Pension liability adjustments | (98,108) | (106,375) | (8,267) |
Unrealized gains on securities | 119,252 | 115,911 | (3,341) |
Unrealized gains (losses) on derivative instruments | (39) | (25) | 14 |
Consolidated Cash Flow Statement
(In millions of yen)
FY '15 9 months (Apr. 1, 2014 - Dec. 31, 2014) (A) | FY '16 9 months (Apr. 1, 2015 - Dec. 31, 2015) (B) | B - A | ||
I | Cash flows from operating activities | |||
1 | Net income | 154,354 | 162,743 | 8,389 |
2 | Adjustments to reconcile net income to net cash provided by operating activities | |||
(1) Depreciation of tangible fixed assets and other | 110,153 | 105,949 | (4,204) | |
(2) Decrease in trade receivables | 100,280 | 189,355 | 89,075 | |
(3) Decrease (increase) in inventories | (176,662) | (82,509) | 94,153 | |
(4) Increase (decrease) in trade payables | (13,793) | (118,264) | (104,471) | |
(5) Other, net | 16,165 | (91,785) | (107,950) | |
Net cash provided by operating activities | 190,497 | 165,489 | (25,008) | |
II | Cash flows from investing activities | |||
1 | Capital expenditure | (150,507) | (126,477) | 24,030 |
2 | Proceeds from sale of property, plant and equipment | 5,728 | 1,716 | (4,012) |
3 | Purchase of short-term investments and investment securities (net of cash acquired) | (1,985) | (57,394) | (55,409) |
4 | Proceeds from sale of short-term investments and investment securities | 7,828 | 4,925 | (2,903) |
5 | Other, net | (3,719) | (12,041) | (8,322) |
Net cash used in investing activities | (142,655) | (189,271) | (46,616) | |
I+II Free cash flow | 47,842 | (23,782) | (71,624) | |
III | Cash flows from financing activities | |||
1 | Proceeds from long-term debt | 50,001 | 80,105 | 30,104 |
2 | Repayment of long-term debt | (54,763) | (71,367) | (16,604) |
3 | Increase (decrease) in bank loans, net | 12,656 | (1,458) | (14,114) |
4 | Dividends paid | (42,936) | (57,963) | (15,027) |
5 | Purchase of treasury stock | (37) | (36) | 1 |
6 | Reissuance of treasury stock | 0 | 0 | 0 |
7 | Other, net | (2,971) | (4,396) | (1,425) |
Net cash provided by (used in) financing activities | (38,050) | (55,115) | (17,065) | |
IV | Effect of exchange rate changes on cash and cash equivalents | 24,794 | (11,609) | (36,403) |
V | Net increase (decrease) in cash and cash equivalents | 34,586 | (90,506) | (125,092) |
VI | Cash and cash equivalents at beginning of period | 418,049 | 568,517 | 150,468 |
VII | Cash and cash equivalents at end of period | 452,635 | 478,011 | 25,376 |
Consolidated Segment Information (First 9 Months, Fiscal 2016)
1. Sales and Operating Income by Business Segment
(In millions of yen)
Business Segment | FY '15 9 months (Apr. 1, 2014 - Dec. 31, 2014) | FY '16 9 months (Apr. 1, 2015 - Dec. 31, 2015) | C - A | D - B | C/A (%) | |||
Sales (A) | Operating income (B) | Sales (C) | Operating income (D) | |||||
Energy and Electric Systems | 779,708 | 32,577 | 808,616 | 18,398 | 28,908 | (14,179) | 104 | |
Industrial Automation Systems | 932,592 | 108,202 | 988,751 | 127,179 | 56,159 | 18,977 | 106 | |
Information and Communication Systems | 375,481 | 12,994 | 363,895 | 4,445 | (11,586) | (8,549) | 97 | |
Electronic Devices | 161,602 | 15,990 | 166,155 | 18,960 | 4,553 | 2,970 | 103 | |
Home Appliances | 689,627 | 41,181 | 731,334 | 48,182 | 41,707 | 7,001 | 106 | |
Others | 534,907 | 13,985 | 509,609 | 13,688 | (25,298) | (297) | 95 | |
Subtotal | 3,473,917 | 224,929 | 3,568,360 | 230,852 | 94,443 | 5,923 | 103 | |
Eliminations and other | (490,656) | (23,591) | (476,752) | (23,537) | 13,904 | 54 | - | |
Total | 2,983,261 | 201,338 | 3,091,608 | 207,315 | 108,347 | 5,977 | 104 | |
*Note: Inter-segment sales are included in the above chart.
2. Sales and Operating Income by Location
(In millions of yen)
Location | FY '15 9 months (Apr. 1, 2014 - Dec. 31, 2014) | FY '16 9 months (Apr. 1, 2015 - Dec. 31, 2015) | C - A | D - B | C/A (%) | ||
Sales (A) | Operating income (B) | Sales (C) | Operating income (D) | ||||
Japan | 2,460,765 | 142,828 | 2,469,056 | 118,404 | 8,291 | (24,424) | 100 |
North America | 278,930 | 2,800 | 331,719 | 4,825 | 52,789 | 2,025 | 119 |
Asia (excluding Japan) | 742,455 | 58,412 | 783,040 | 69,727 | 40,585 | 11,315 | 105 |
Europe | 289,455 | 9,176 | 302,666 | 12,914 | 13,211 | 3,738 | 105 |
Others | 36,241 | 658 | 37,171 | 1,187 | 930 | 529 | 103 |
Subtotal | 3,807,846 | 213,874 | 3,923,652 | 207,057 | 115,806 | (6,817) | 103 |
Eliminations | (824,585) | (12,536) | (832,044) | 258 | (7,459) | 12,794 | - |
Total | 2,983,261 | 201,338 | 3,091,608 | 207,315 | 108,347 | 5,977 | 104 |
*Note: Inter-segment sales are included in the above chart.
3. Sales by Location of Customers
(In millions of yen)
Location of Customers | FY '15 9 months (Apr. 1, 2014 - Dec. 31, 2014) | FY '16 9 months (Apr. 1, 2015 - Dec. 31, 2015) | B - A | B/A (%) | ||||
Sales (A) | % of total net sales | Sales (B) | % of total net sales | |||||
Japan | 1,683,389 | 56.4 | 1,681,801 | 54.4 | (1,588) | 100 | ||
North America | 284,886 | 9.5 | 331,635 | 10.7 | 46,749 | 116 | ||
Asia (excluding Japan) | 681,646 | 22.9 | 729,255 | 23.6 | 47,609 | 107 | ||
Europe | 268,811 | 9.0 | 282,554 | 9.1 | 13,743 | 105 | ||
Others | 64,529 | 2.2 | 66,363 | 2.2 | 1,834 | 103 | ||
Total overseas sales | 1,299,872 | 43.6 | 1,409,807 | 45.6 | 109,935 | 108 | ||
Consolidated total | 2,983,261 | 100.0 | 3,091,608 | 100.0 | 108,347 | 104 | ||
Consolidated Segment Information (Third Quarter, Fiscal 2016)
1. Sales and Operating Income by Business Segment
(In millions of yen)
Business Segment | FY '15 Q3 (Oct. 1, 2014 - Dec. 31, 2014) | FY '16 Q3 (Oct. 1, 2015 - Dec. 31, 2015) | C - A | D - B | C/A (%) | |||
Sales (A) | Operating income (B) | Sales (C) | Operating income (D) | |||||
Energy and Electric Systems | 277,514 | 20,062 | 284,838 | 14,625 | 7,324 | (5,437) | 103 | |
Industrial Automation Systems | 323,291 | 41,939 | 327,231 | 43,260 | 3,940 | 1,321 | 101 | |
Information and Communication Systems | 126,969 | 7,654 | 139,858 | 8,260 | 12,889 | 606 | 110 | |
Electronic Devices | 55,077 | 8,218 | 42,947 | 2,609 | (12,130) | (5,609) | 78 | |
Home Appliances | 212,527 | 5,956 | 220,196 | 14,988 | 7,669 | 9,032 | 104 | |
Others | 183,664 | 5,712 | 171,125 | 6,321 | (12,539) | 609 | 93 | |
Subtotal | 1,179,042 | 89,541 | 1,186,195 | 90,063 | 7,153 | 522 | 101 | |
Eliminations and other | (168,619) | (9,594) | (157,872) | (9,762) | 10,747 | (168) | - | |
Total | 1,010,423 | 79,947 | 1,028,323 | 80,301 | 17,900 | 354 | 102 | |
*Note: Inter-segment sales are included in the above chart.
2. Sales and Operating Income by Location
(In millions of yen)
Location | FY '15 Q3 (Oct. 1, 2014 - Dec. 31, 2014) | FY '16 Q3 (Oct. 1, 2015 - Dec. 31, 2015) | C - A | D - B | C/A (%) | ||
Sales (A) | Operating income (B) | Sales (C) | Operating income (D) | ||||
Japan | 839,516 | 70,837 | 844,016 | 57,185 | 4,500 | (13,652) | 101 |
North America | 101,903 | 300 | 108,381 | 386 | 6,478 | 86 | 106 |
Asia (excluding Japan) | 255,493 | 18,311 | 238,177 | 21,447 | (17,316) | 3,136 | 93 |
Europe | 95,925 | 2,388 | 95,606 | 3,159 | (319) | 771 | 100 |
Others | 14,584 | 414 | 12,265 | 612 | (2,319) | 198 | 84 |
Subtotal | 1,307,421 | 92,250 | 1,298,445 | 82,789 | (8,976) | (9,461) | 99 |
Eliminations | (296,998) | (12,303) | (270,122) | (2,488) | 26,876 | 9,815 | - |
Total | 1,010,423 | 79,947 | 1,028,323 | 80,301 | 17,900 | 354 | 102 |
*Note: Inter-segment sales are included in the above chart
3. Sales by Location of Customers
(In millions of yen)
Location of Customers | FY '15 Q3 (Oct. 1, 2014 - Dec. 31, 2014) | FY '16 Q3 (Oct. 1, 2015 - Dec. 31, 2015) | B - A | B/A (%) | ||||
Sales (A) | % of total net sales | Sales (B) | % of total net sales | |||||
Japan | 562,840 | 55.7 | 576,280 | 56.0 | 13,440 | 102 | ||
North America | 101,979 | 10.1 | 108,699 | 10.6 | 6,720 | 107 | ||
Asia (excluding Japan) | 233,909 | 23.2 | 234,295 | 22.8 | 386 | 100 | ||
Europe | 87,080 | 8.6 | 88,458 | 8.6 | 1,378 | 102 | ||
Others | 24,615 | 2.4 | 20,591 | 2.0 | (4,024) | 84 | ||
Total overseas sales | 447,583 | 44.3 | 452,043 | 44.0 | 4,460 | 101 | ||
Consolidated total | 1,010,423 | 100.0 | 1,028,323 | 100.0 | 17,900 | 102 | ||
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.
Notes
1. Change of status in significant consolidated subsidiaries in this quarterly period
Addition of an Italian commercial air conditioning systems manufacturer, DeLclima S.p.A., as a result of acquisition.
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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 4,323.0 billion yen (US$ 36.0 billion*) in the fiscal year ended March 31, 2015. For more information visit:
http://www.MitsubishiElectric.com
*At an exchange rate of 120 yen to the US dollar, the rate given by the Tokyo Foreign Exchange Market on March 31, 2015