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Half-year Report

31 Oct 2016 07:00

RNS Number : 8128N
Mitsubishi Electric Corporation
31 October 2016
 

 

 

 

FOR IMMEDIATE RELEASE

No. 3065

Investor Relations Inquiries

Media Inquiries

Investor Relations Group, Corporate Finance Division

Public Relations 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 Consolidated Financial Results for the First Half and Second Quarter of Fiscal 2017

 

 

TOKYO, October 31, 2016 - Mitsubishi Electric Corporation (TOKYO: 6503) announced today its financial results for the first half and second quarter, ended September 30, 2016, of the current fiscal year ending March 31, 2017 (fiscal 2017).

 

 

1. Consolidated Half-year Results (April 1, 2016 - September 30, 2016)

Net sales:

1,972.3

billion yen

(4% decrease from the same period last year)

Operating income:

121.7

billion yen

(4% decrease from the same period last year)

Income before income taxes:

123.7

billion yen

(7% decrease from the same period last year)

Net income attributable to Mitsubishi Electric Corp.:

88.3

billion yen

(5% decrease from the same period last year)

 

The business environment in the first half of fiscal 2017, from April through September 2016, experienced a continuing gradual slowdown in China and weak consumption in Japan, while the U.S. economy showed strong signs of expansion and European economy continued to recover gradually. In addition, the yen became stronger against foreign currencies compared to the same period of the previous year.

 

Under these circumstances, consolidated net sales in the first half of fiscal 2017 decreased by 4% compared to the same period of the previous fiscal year to 1,972.3 billion yen, owing to factors such as decreased sales in the Industrial Automation Systems, Electronic Devices and Information and Communication Systems segments. Consolidated operating income decreased by 4% compared to the same period of the previous fiscal year to 121.7 billion yen, due to decreased profits in the Industrial Automation Systems and Electronic Devices segments.

 

Consolidated Financial Results by Business Segment (First Half, Fiscal 2017)

Energy and Electric Systems

Total sales:

525.4

billion yen

(unchanged from the same period last year)

Operating income:

9.1

billion yen

(5.4 billion yen increase from the same period last year)

The social infrastructure systems business saw a decrease in orders compared to the same period of the previous fiscal year due primarily to a decrease in the transportation systems business outside Japan. Sales, meanwhile, increased compared to the same period of the previous fiscal year due mainly to increases in the power systems business and in the transportation systems business in Japan.

The building systems business experienced decreases in both orders and sales compared to the same period of the previous fiscal year, due primarily to negative influences caused by the stronger yen, despite the growth in the renewal business in Japan, as well as the installation business of new elevators and escalators outside Japan.

As a result, total sales for this segment remained substantially unchanged from the same period of the previous fiscal year. Operating income increased 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:

617.6

billion yen

(7% decrease from the same period last year)

Operating income:

62.1

billion yen

(21.8 billion yen decrease from the same period last year)

The factory automation systems business saw an increase in orders from the same period of the previous fiscal year mainly due to growth in capital expenditures in the fields of smartphones and electrical automotives in China, while sales experienced a decrease from the same period of the previous fiscal year due to decreased capital expenditures of photovoltaic systems in Japan and the negative influences caused by the stronger yen.

The automotive equipment business saw decreases in both orders and sales from the same period of the previous fiscal year due primarily to stagnation in car sales in Japan and the negative influence of the stronger yen, despite growth in car sales mainly in Europe.

As a result, total sales for this segment decreased by 7% from the same period of the previous fiscal year. Operating income decreased by 21.8 billion yen from the same period of the previous fiscal year due primarily to a decrease in sales.

 

 

Information and Communication Systems

Total sales:

198.2

billion yen

(12% decrease from the same period last year)

Operating income:

3.8

billion yen

(7.6 billion yen improvement from the same period last year, turning into profit)

The telecommunications equipment business saw decreases in both orders and sales compared to the same period of the previous fiscal year due primarily to the sellout of an affiliated company in the beginning of the fiscal year and decreased sales of communications infrastructure equipment.

The information systems and service business saw a decrease in sales compared to the same period of the previous fiscal year, owing to a decrease in the IT infrastructure service business.

The electronic systems business saw a decrease in orders compared to the same period of the previous fiscal year due to a shift in the portfolio of large-scale projects in the space business, while sales experienced an increase compared to the same period of the previous fiscal year due primarily to the progress with large-scale projects in the defense systems business.

As a result, total sales for this segment decreased by 12% compared to the same period of the previous fiscal year. Operating income improved by 7.6 billion yen from the same period of the previous fiscal year, turning into profit, due primarily to a shift in project portfolios.

 

 

Electronic Devices

Total sales:

86.5

billion yen

(30% decrease from the same period last year)

Operating income:

1.7

billion yen

(14.5 billion yen decrease from the same period last year)

The electronic devices business saw an increase in orders from the same period of the previous fiscal year due to an increase in optical communication devices, while sales decreased by 30% compared to the same period of the previous fiscal year due to a decrease in demand for power modules, along with the negative influences of the 2016 Kumamoto earthquakes and the stronger yen.

As a result, operating income decreased by 14.5 billion yen compared to the same period of the previous fiscal year due primarily to a decrease in sales.

 

 

 

 

 

 

Home Appliances

Total sales:

519.3

billion yen

(2% increase from the same period last year)

Operating income:

48.6

billion yen

(15.4 billion yen increase from the same period last year)

The home appliances business saw an increase in sales of 2% compared to the same period of the previous fiscal year due to increases in sales of air conditioners in the European and North American markets and sales of residential and industrial air conditioners in Japan, despite negative influences caused by the stronger yen.

Operating income increased by 15.4 billion yen compared to the same period of the previous fiscal year largely due to an increase in sales and the improvement in profitability of air conditioners outside Japan.

 

 

Others

Total sales:

336.7

billion yen

(1% decrease from the same period last year)

Operating income:

9.3

billion yen

(2.0 billion yen increase from the same period last year)

Sales decreased by 1% compared to the same period of the previous fiscal year mainly due to decreases in sales among affiliated companies involved in materials procurement.

Operating income increased by 2.0 billion yen from the same period of the previous fiscal year due primarily to cost reductions.

 

 

2. Consolidated Second-quarter Results (July 1, 2016 - September 30, 2016)

Net sales:

1,045.2

billion yen

(3% decrease from the same period last year)

Operating income:

62.0

billion yen

(14% decrease from the same period last year)

Income before income taxes:

62.7

billion yen

(5% decrease from the same period last year)

Net income attributable to Mitsubishi Electric Corp.:

45.4

billion yen

(3% decrease from the same period last year)

 

Consolidated net sales for this quarter, from July through September 2016, was 1,045.2 billion yen, a 3% decrease from the same period of the previous fiscal year, due primarily to decreased sales in the Industrial Automation Systems, Electronic Devices and Information and Communication Systems segments.

Consolidated operating income was 62.0 billion yen, a decrease of 14% from the same period of the previous fiscal year, with decreased profits in the Industrial Automation Systems, Energy and Electric Systems, and Electronic Devices segments.

 

 

Consolidated Financial Results by Business Segment (Second Quarter, Fiscal 2017)

Energy and Electric Systems

Total sales:

287.4

billion yen

(Unchanged from the same period last year)

Operating income:

5.2

billion yen

(5.1 billion yen decrease from the same period last year)

The social infrastructure systems business saw increases in both orders and sales compared to the same period of the previous fiscal year mainly due to increases in the power systems business and the transportation systems business in Japan, despite a decrease in sales of the transportation systems business outside Japan.

The building systems business experienced decreases in both orders and sales compared to the same period of the previous fiscal year, owing to negative influences caused by the stronger yen, despite the growth in the renewal business in Japan and the installation business of new elevators and escalators outside Japan.

As a result, total sales for this segment were unchanged from the same period of the previous fiscal year. Operating income decreased by 5.1 billion yen from the same period of the previous fiscal year due primarily to a shift in project portfolios.

 

 

Industrial Automation Systems

Total sales:

315.3

billion yen

(5% decrease from the same period last year)

Operating income:

29.6

billion yen

(11.3 billion yen decrease from the same period last year)

The factory automation systems business saw an increase in orders from the same period of the previous fiscal year mainly due to a growth in capital expenditures in the fields of smartphones and electrical automotives in China, while sales experienced a decrease from the same period of the previous fiscal year due to decreased capital expenditures of the power distribution products in Japan and the negative influences caused by the stronger yen.

The automotive equipment business saw decreases in both orders and sales from the same period of the previous fiscal year due primarily to stagnation in car sales in Japan and the negative influence of the stronger yen, despite growth in car sales mainly in Europe.

As a result, total sales for this segment decreased by 5% from the same period of the previous fiscal year. Operating income decreased by 11.3 billion yen from the same period of the previous fiscal year due primarily to a decrease in sales.

 

 

Information and Communication Systems

Total sales:

124.7

billion yen

(3% decrease from the same period last year)

Operating income:

7.0

billion yen

(9.1 billion yen improvement from the same period last year, turning into profit)

The telecommunications equipment business saw decreases in both orders and sales compared to the same period of the previous fiscal year due primarily to the sellout of an affiliated company in the beginning of the fiscal year and decreased sales of communications infrastructure equipment.

The information systems and service business saw a decrease in sales compared to the same period of the previous fiscal year, owing to a decrease in the IT infrastructure service business.

The electronic systems business saw a decrease in orders compared to the same period of the previous fiscal year due to a shift in the portfolio of large-scale projects in the space business, while sales experienced an increase compared to the same period of the previous fiscal year due primarily to the progress with 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 improved by 9.1 billion yen from the same period of the previous fiscal year, turning into profit, due primarily to a shift in project portfolios.

 

 

Electronic Devices

Total sales:

47.4

billion yen

(17% decrease from the same period last year)

Operating income:

0.8

billion yen

(3.2 billion yen decrease from the same period last year)

The electronic devices business saw an increase in orders from the same period of the previous fiscal year due to an increase in optical communication devices, while sales decreased by 17% compared to the same period of the previous fiscal year due to a decrease in demand for power modules, along with the negative influences of the 2016 Kumamoto earthquakes and the stronger yen.

As a result, operating income decreased by 3.2 billion yen compared to the same period of the previous fiscal year due primarily to a decrease in sales.

 

 

Home Appliances

Total sales:

257.4

billion yen

(Unchanged from the same period last year)

Operating income:

16.8

billion yen

(Unchanged from the same period last year)

The home appliances business remained unchanged compared to the same period of the previous fiscal year, with an increase in sales of air conditioners in the European and North American markets, despite of the negative influence of the stronger yen.

Operating income remained unchanged compared to the same period of the previous fiscal year.

 

Others

Total sales:

180.3

billion yen

(3% increase from the same period last year)

Operating income:

6.7

billion yen

(0.2 billion yen increase from the same period last year)

Sales increased by 3% compared to the same period of the previous fiscal year mainly due to increases among affiliated engineering companies.

Operating income increased by 0.2 billion yen from the same period of the previous fiscal year due primarily to an increase in sales.

 

 

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 243.2 billion yen to 3,816.6 billion yen. The change in the balance of total assets is mainly attributable to increases in the balances of cash and cash equivalents by 10.9 billion yen, and of inventories by 10.9 billion yen as a result of work-in-process as recorded in commensurate with progress in job orders under pertinent contracts, while trade receivables decreased by 190.2 billion yen primarily as a result of credit collection and investments decreased by 48.0 billion yen mainly due to falling stock prices.

 

Total liabilities decreased from the end of the previous fiscal year by 175.2 billion yen to 1,947.1 billion yen. The outstanding balances of debts and corporate bonds decreased by 33.2 billion yen from the end of the previous fiscal year to 370.7 billion yen, resulting in a decline in the ratio of interest bearing debt to total assets to 9.7%, representing a 0.3 point decrease compared to the end of the previous fiscal year. Retirement and severance benefits increased by 8.4 billion yen, mainly resulting from a decrease in pension assets following a fall in stock prices, while the outstanding balance of trade payables decreased by 107.5 billion yen and other current liabilities decreased by 39.0 billion yen.

 

Mitsubishi Electric Corporation shareholders' equity decreased by 61.1 billion yen compared to the end of the previous fiscal year to 1,777.6 billion yen. The shareholders' equity ratio was recorded at 46.6%, representing a 1.3 point increase compared to the end of the previous fiscal year. These changes referred to above primarily resulted from a dividend payment of 38.6 billion yen and a decrease in accumulated other comprehensive income by 109.9 billion yen caused by such factors as the stronger yen and falling stock prices, despite an increase from recording a net income attributable to Mitsubishi Electric Corporation of 88.3 billion yen.

 

Cash flows from operating activities decreased by 2.2 billion yen compared to the same period of the previous fiscal year to 177.5 billion yen (cash in). Cash flows from investing activities decreased by 36.0 billion yen compared to the same period of the previous fiscal year to 58.9 billion yen (cash out) due to increases in proceeds from the sale of short-term investments and investment securities and other factors. As a result, free cash flow was 118.6 billion yen (cash in). Cash flows from financing activities were 77.7 billion yen (cash out) mainly due to dividend payment.

 

 

Forecast for Fiscal 2017 (year ending March 31, 2017) 

The consolidated earnings forecast for fiscal 2017, ending March 31, 2017, has been revised from the previous forecast announced on July 28, 2016. Net sales is expected to fall below the previous forecast, 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 owing mainly to the improved profitability of air conditioners outside Japan in the Home Appliances segment and the positive results of business improvement measures in the Information and Communication Systems segment.

 

Consolidated Earnings Forecast for Fiscal 2017

Consolidated

Previous forecast (announced July 28)

Current forecast

Net sales:

4,180.0 billion yen

4,150.0 billion yen

(6% decrease from fiscal 2016)

Operating income:

235.0 billion yen

250.0 billion yen

(17% decrease from fiscal 2016)

Income before income taxes:

255.0 billion yen

265.0 billion yen

(17% decrease from fiscal 2016)

Net income attributable to

Mitsubishi Electric Corp.:

175.0 billion yen

185.0 billion yen

(19% decrease from fiscal 2016)

 

 

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 Half-year Results

(In billions of yen except where noted)

FY '16 1st half (A)(Apr. 1, 2015 - Sept. 30, 2015)

FY '17 1st half (B)(Apr. 1, 2016 - Sept. 30, 2016)

B - A

B/A

(%)

Net sales

2,063.2

1,972.3

(90.9)

96

Operating income

127.0

121.7

(5.2)

96

Income before income taxes

133.0

123.7

(9.3)

93

Net income attributable to Mitsubishi Electric Corp.

92.9

88.3

(4.5)

95

Basic net income per share attributable to Mitsubishi Electric Corp.

43.29 yen

41.16 yen

(2.13 yen)

95

 

2. Consolidated Second-quarter Results

(In billions of yen except where noted)

FY '16 Q2 (A)(Jul. 1, 2015 -Sept. 30, 2015)

FY '17 Q2 (B)(Jul. 1, 2016 - Sept. 30, 2016)

B - A

B/A

(%)

Net sales

1,074.8

1,045.2

(29.5)

97

Operating income

72.3

62.0

(10.3)

86

Income before income taxes

65.8

62.7

(3.1)

95

Net income attributable to Mitsubishi Electric Corp.

46.6

45.4

(1.1)

97

Basic net income per share attributable to Mitsubishi Electric Corp.

21.71 yen

21.17 yen

(0.54 yen)

97

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 Half, Fiscal 2017)

(In millions of yen)

FY '16 1st half

(Apr. 1, 2015 -

Sept. 30, 2015)

FY '17 1st half

(Apr. 1, 2016 -

Sept. 30, 2016)

B - A

B/A (%)

(A)

% of total

(B)

% of total

Net sales

2,063,285

100.0

1,972,354

100.0

(90,931)

96

Cost of sales

1,432,770

69.4

1,358,355

68.9

(74,415)

95

Selling, general and

administrative expenses

499,497

24.2

490,308

24.8

(9,189)

98

 

Loss on impairment of

long-lived assets

4,004

0.2

1,944

0.1

(2,060)

49

Operating income

127,014

6.2

121,747

6.2

(5,267)

96

Other income

26,573

1.2

35,843

1.8

9,270

135

Interest and dividends

4,279

0.2

4,262

0.2

(17)

100

Equity in earnings of affiliated companies

13,261

0.6

9,523

0.5

(3,738)

72

Other

9,033

0.4

22,058

1.1

13,025

244

Other expenses

20,529

1.0

33,864

1.7

13,335

165

Interest

1,830

0.1

1,562

0.1

(268)

85

Other

18,699

0.9

32,302

1.6

13,603

173

Income before income taxes

133,058

6.4

123,726

6.3

(9,332)

93

Income taxes

33,925

1.6

29,158

1.5

(4,767)

86

Net income

99,133

4.8

94,568

4.8

(4,565)

95

Net income attributable to

the noncontrolling interests

6,208

0.3

6,226

0.3

18

100

Net income attributable to Mitsubishi Electric Corp.

92,925

4.5

88,342

4.5

(4,583)

95

 

Consolidated Comprehensive Income Statement (First Half, Fiscal 2017)

(In millions of yen)

FY '16

1st half (A)

(Apr. 1, 2015 - Sept. 30, 2015)

FY '17

1st half (B)

(Apr. 1, 2016 - Sept. 30, 2016)

B - A

Net income

99,133

94,568

(4,565)

Other comprehensive income (loss), net of tax

Foreign currency translation adjustments

(32,458)

(93,760)

(61,302)

Pension liability adjustments

(25,977)

(4,776)

21,201

Unrealized gains (losses) on securities

(30,153)

(20,191)

9,962

Unrealized gains (losses) on derivative instruments

(17)

(42)

(25)

Total

(88,605)

(118,769)

(30,164)

Comprehensive income (loss)

10,528

(24,201)

(34,729)

Comprehensive income (loss) attributable to

the noncontrolling interests

2,236

(2,596)

(4,832)

Comprehensive income (loss) attributable to

Mitsubishi Electric Corp.

8,292

(21,605)

(29,897)

 

Consolidated Profit and Loss Statement (Second Quarter, Fiscal 2017)

(In millions of yen)

FY '16 Q2

(Jul. 1, 2015 -

Sept. 30, 2015)

FY '17 Q2

(Jul. 1, 2016 -

Sept. 30, 2016)

B - A

B/A (%)

(A)

% of total

(B)

% of total

Net sales

1,074,845

100.0

1,045,277

100.0

(29,568)

97

Cost of sales

741,722

69.0

730,852

69.9

(10,870)

99

Selling, general andadministrative expenses

256,737

23.9

250,438

24.0

(6,299)

98

Loss on impairment of

long-lived assets

4,004

0.4

1,944

0.2

(2,060)

49

Operating income

72,382

6.7

62,043

5.9

(10,339)

86

Other income

13,393

1.3

9,303

0.9

(4,090)

69

Interest and dividends

1,245

0.1

1,401

0.1

156

113

Equity in earnings of affiliated companies

8,212

0.8

5,936

0.6

(2,276)

72

Other

3,936

0.4

1,966

0.2

(1,970)

50

Other expenses

19,894

1.9

8,629

0.8

(11,265)

43

Interest

904

0.1

803

0.1

(101)

89

Other

18,990

1.8

7,826

0.7

(11,164)

41

Income before income taxes

65,881

6.1

62,717

6.0

(3,164)

95

Income taxes

16,427

1.5

14,398

1.4

(2,029)

88

Net income

49,454

4.6

48,319

4.6

(1,135)

98

Net income attributable to

the noncontrolling interests

2,846

0.3

2,891

0.3

45

102

Net income attributable to Mitsubishi Electric Corp.

46,608

4.3

45,428

4.3

(1,180)

97

 

Consolidated Comprehensive Income Statement (Second Quarter, Fiscal 2017)

(In millions of yen)

FY '16 Q2 (A)

(Jul. 1, 2015 -

Sept. 30, 2015)

FY '17 Q2 (B)

(Jul. 1, 2016 -

Sept. 30, 2016)

B - A

Net income

49,454

48,319

(1,135)

Other comprehensive income (loss), net of tax

Foreign currency translation adjustments

(37,989)

(26,216)

11,773

Pension liability adjustments

(36,849)

10,064

46,913

Unrealized gains (losses) on securities

(36,960)

7,776

44,736

Unrealized gains (losses) on derivative instruments

(54)

(8)

46

Total

(111,852)

(8,384)

103,468

Comprehensive income (loss)

(62,398)

39,935

102,333

Comprehensive income (loss) attributable to

the noncontrolling interests

(1,668)

865

2,533

Comprehensive income (loss) attributable to

Mitsubishi Electric Corp.

(60,730)

39,070

99,800

 

 

Consolidated Balance Sheet

(In millions of yen)

FY '16 (A)

(ended Mar. 31, 2016)

FY ' 17

1st half (B)

(ended Sept. 30, 2016)

B - A

(Assets)

Current assets

2,551,863

2,377,463

(174,400)

Cash and cash equivalents

574,170

585,160

10,990

Trade receivables

1,035,168

846,089

(189,079)

Inventories

644,127

655,035

10,908

Prepaid expenses and other current assets

298,398

291,179

(7,219)

Long-term trade receivables

4,661

3,486

(1,175)

Investments

537,706

489,634

(48,072)

Net property, plant and equipment

712,599

702,666

(9,933)

Other assets

253,112

243,449

(9,663)

Total assets

4,059,941

3,816,698

(243,243)

(Liabilities)

Current liabilities

1,507,943

1,343,084

(164,859)

Bank loans and current portion of long-term debt

116,532

98,272

(18,260)

Trade payables

773,714

666,214

(107,500)

Other current liabilities

617,697

578,598

(39,099)

Long-term debt

287,507

272,514

(14,993)

Retirement and severance benefits

229,750

238,216

8,466

Other fixed liabilities

97,238

93,378

(3,860)

Total liabilities

2,122,438

1,947,192

(175,246)

(Equity)

Mitsubishi Electric Corp. shareholders' equity

1,838,773

1,777,600

(61,173)

Common stock

175,820

175,820

Capital surplus

211,999

211,926

(73)

Retained earnings

1,502,027

1,551,727

49,700

Accumulated other comprehensive income (loss)

(50,699)

(160,646)

(109,947)

Treasury stock at cost

(374)

(1,227)

(853)

Noncontrolling interests

98,730

91,906

(6,824)

Total equity

1,937,503

1,869,506

(67,997)

Total liabilities and equity

4,059,941

3,816,698

(243,243)

Balance of Debt

404,039

370,786

(33,253)

Accumulated other comprehensive income (loss):

Foreign currency translation adjustments

39,847

(45,109)

(84,956)

Pension liability adjustments

(184,231)

(189,007)

(4,776)

Unrealized gains on securities

93,742

73,560

(20,182)

Unrealized gains (losses) on derivative

instruments

(57)

(90)

(33)

 

Consolidated Cash Flow Statement

(In millions of yen)

FY '16 1st half

(Apr. 1, 2015 - Sept. 30, 2015)

 (A)

FY '17 1st half

(Apr. 1, 2016 - Sept. 30, 2016)

(B)

B - A

I

Cash flows from operating activities

1

Net income

99,133

94,568

(4,565)

2

Adjustments to reconcile net income to net cash provided by operating activities

(1) Depreciation of tangible fixed assets and other

69,774

64,755

(5,019)

(2) Decrease in trade receivables

173,200

143,347

(29,853)

(3) Decrease (increase) in inventories

(19,907)

(45,816)

(25,909)

(4) Increase (decrease) in trade payables

(98,053)

(78,220)

19,833

(5) Other, net

(44,274)

(1,045)

43,229

Net cash provided by operating activities

179,873

177,589

(2,284)

II

Cash flows from investing activities

1

Capital expenditure

(86,019)

(82,648)

3,371

2

Proceeds from sale of property, plant and equipment

1,177

4,413

3,236

3

Purchase of short-term investments and investment securities (net of cash acquired)

(4,139)

(2,385)

1,754

4

Proceeds from sale of short-term investments and investment securities (net of cash disposed)

2,240

17,033

14,793

5

Other, net

(8,269)

4,630

12,899

Net cash used in investing activities

(95,010)

(58,957)

36,053

I+II Free cash flow

84,863

118,632

33,769

III

Cash flows from financing activities

1

Proceeds from long-term debt

30,100

47

(30,053)

2

Repayment of long-term debt

(53,818)

(30,939)

22,879

3

Increase (decrease) in bank loans, net

(2,040)

(2,830)

(790)

4

Dividends paid

(38,642)

(38,642)

0

5

Purchase of treasury stock

(27)

(1,095)

(1,068)

6

Reissuance of treasury stock

0

0

0

7

Other, net

(5,018)

(4,307)

711

Net cash provided by (used in) financing activities

(69,445)

(77,766)

(8,321)

IV

Effect of exchange rate changes on cash and cash equivalents

(10,490)

(29,876)

(19,386)

V

Net increase in cash and cash equivalents

4,928

10,990

6,062

VI

Cash and cash equivalents at beginning of period

568,517

574,170

5,653

VII

Cash and cash equivalents at end of period

573,445

585,160

11,715

 

Consolidated Segment Information (First Half, Fiscal 2017)

 

1. Sales and Operating Income by Business Segment

(In millions of yen)

Business Segment

FY '16 1st half

(Apr. 1, 2015 -

Sept. 30, 2015)

FY '17 1st half

(Apr. 1, 2016 -

Sept. 30, 2016)

C - A

D - B

C/A

(%)

Sales (A)

Operating income (loss) (B)

Sales (C)

Operating income (D)

Energy and Electric Systems

523,778

3,773

525,471

9,182

1,693

5,409

100

Industrial Automation

Systems

661,520

83,919

617,620

62,111

(43,900)

(21,808)

93

Information and

Communication Systems

224,037

(3,815)

198,266

3,868

(25,771)

7,683

88

Electronic Devices

123,208

16,351

86,537

1,774

(36,671)

(14,577)

70

Home Appliances

511,138

33,194

519,397

48,668

8,259

15,474

102

Others

338,484

7,367

336,771

9,395

(1,713)

2,028

99

Subtotal

2,382,165

140,789

2,284,062

134,998

(98,103)

(5,791)

96

Eliminations and other

(318,880)

(13,775)

(311,708)

(13,251)

7,172

524

-

Total

2,063,285

127,014

1,972,354

121,747

(90,931)

(5,267)

96

*Note: Inter-segment sales are included in the above chart.

2. Sales and Operating Income by Location

(In millions of yen)

Location

FY '16 1st half

(Apr. 1, 2015 -

Sept. 30, 2015)

FY '17 1st half

(Apr. 1, 2016 -

Sept. 30, 2016)

C - A

D - B

C/A

(%)

Sales (A)

Operating income (B)

Sales (C)

Operating income (D)

Japan

1,625,040

61,219

1,540,435

48,362

(84,605)

(12,857)

95

North America

223,338

4,439

203,856

4,120

(19,482)

(319)

91

Asia (excluding Japan)

544,863

48,280

506,153

49,270

(38,710)

990

93

Europe

207,060

9,755

213,063

8,643

6,003

(1,112)

103

Others

24,906

575

22,019

877

(2,887)

302

88

Subtotal

2,625,207

124,268

2,485,526

111,272

(139,681)

(12,996)

95

Eliminations

(561,922)

2,746

(513,172)

10,475

48,750

7,729

-

Total

2,063,285

127,014

1,972,354

121,747

(90,931)

(5,267)

96

*Note: Inter-segment sales are included in the above chart.

3. Sales by Location of Customers

(In millions of yen)

Location of Customers

FY '16 1st half

(Apr. 1, 2015 -

Sept. 30, 2015)

FY '17 1st half

(Apr. 1, 2016 -

Sept. 30, 2016)

B - A

B/A (%)

Sales (A)

% of total net sales

Sales (B)

% of total net sales

Japan

1,105,521

53.6

1,081,895

54.9

(23,626)

98

North America

222,936

10.8

202,738

10.3

(20,198)

91

Asia

(excluding Japan)

494,960

24.0

450,994

22.9

(43,966)

91

Europe

194,096

9.4

196,446

9.9

2,350

101

Others

45,772

2.2

40,281

2.0

(5,491)

88

Total overseas sales

957,764

46.4

890,459

45.1

(67,305)

93

Consolidated total

2,063,285

100.0

1,972,354

100.0

(90,931)

96

 

Consolidated Segment Information (Second Quarter, Fiscal 2017)

 

1. Sales and Operating Income by Business Segment

(In millions of yen)

Business Segment

FY '16 Q2

(Jul. 1, 2015 -

Sept. 30, 2015)

FY '17 Q2

(Jul. 1, 2016 -

Sept. 30, 2016)

C - A

D - B

C/A

(%)

Sales (A)

Operating income

(loss) (B)

Sales (C)

Operating income (D)

Energy and Electric

Systems

287,097

10,439

287,420

5,256

323

(5,183)

100

Industrial Automation

Systems

333,170

41,052

315,393

29,690

(17,777)

(11,362)

95

Information and

Communication Systems

128,628

(2,060)

124,741

7,047

(3,887)

9,107

97

Electronic Devices

57,091

4,019

47,457

815

(9,634)

(3,204)

83

Home Appliances

257,046

16,950

257,472

16,882

426

(68)

100

Others

175,294

6,464

180,381

6,752

5,087

288

103

Subtotal

1,238,326

76,864

1,212,864

66,442

(25,462)

(10,422)

98

Eliminations and other

(163,481)

(4,482)

(167,587)

(4,399)

(4,106)

83

-

Total

1,074,845

72,382

1,045,277

62,043

(29,568)

(10,339)

97

*Note: Inter-segment sales are included in the above chart.

 

 

2. Sales and Operating Income by Location

(In millions of yen)

Location

FY '16 Q2

(Jul. 1, 2015 -

Sept. 30, 2015)

FY '17 Q2

(Jul. 1, 2016 -

Sept. 30, 2016)

C - A

D - B

C/A

(%)

Sales (A)

Operating income (B)

Sales (C)

Operating income (D)

Japan

866,669

34,404

845,720

30,416

(20,949)

(3,988)

98

North America

111,183

3,363

101,731

507

(9,452)

(2,856)

91

Asia (excluding Japan)

255,312

19,262

244,377

19,876

(10,935)

614

96

Europe

102,762

5,553

102,370

4,492

(392)

(1,061)

100

Others

12,630

368

11,012

434

(1,618)

66

87

Subtotal

1,348,556

62,950

1,305,210

55,725

(43,346)

(7,225)

97

Eliminations

(273,711)

9,432

(259,933)

6,318

13,778

(3,114)

-

Total

1,074,845

72,382

1,045,277

62,043

(29,568)

(10,339)

97

*Note: Inter-segment sales are included in the above chart

 

 

3. Sales by Location of Customers

(In millions of yen)

Location of Customers

FY '16 Q2

(Jul. 1, 2015 -

Sept. 30, 2015)

FY '17 Q2

(Jul. 1, 2016 -

Sept. 30, 2016)

B - A

B/A (%)

Sales (A)

% of total net sales

Sales (B)

% of total net sales

Japan

606,016

56.4

610,307

58.4

4,291

101

North America

110,120

10.2

101,209

9.7

(8,911)

92

Asia

(excluding Japan)

238,356

22.2

220,776

21.1

(17,580)

93

Europe

96,228

9.0

92,950

8.9

(3,278)

97

Others

24,125

2.2

20,035

1.9

(4,090)

83

Total overseas sales

468,829

43.6

434,970

41.6

(33,859)

93

Consolidated total

1,074,845

100.0

1,045,277

100.0

(29,568)

97

 

 

 

 

 

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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