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Notice of Results(1st Half)

Thu, 30th Oct 2014 07:00

RNS Number : 6827V
Mitsubishi Electric Corporation
30 October 2014

?

FOR IMMEDIATE RELEASE

No. 2878

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

http://www.MitsubishiElectric.com/news/

Mitsubishi Electric Announces Consolidated Financial Results for the First Half and Second Quarter of Fiscal 2015

Tokyo, October 30, 2014 - Mitsubishi Electric Corporation (TOKYO: 6503) announced today its financial results for the first half and second quarter, ended September 30, 2014, of the current fiscal year ending March 31, 2015 (fiscal 2015).

1. Consolidated Half-year Results (April 1, 2014 - September 30, 2014)

Net sales:

1,972.8 billion yen

(9% increase from the same period last year)

Operating income:

121.3 billion yen

(52% increase from the same period last year)

Income before income taxes:

145.9 billion yen

(75% increase from the same period last year)

Net income attributable to

Mitsubishi Electric Corp.:

97.8 billion yen

(102% increase from the same period last year)

The business environment in the first half of fiscal year 2015 in Japan experienced an upward trend in the commercial sector despite a backlash due to the last-minute surge in demand experienced before the rise in consumption tax. Meanwhile, economies outside Japan as a whole saw ongoing gradual expansion, owing to buoyant economic expansion in the U.S. and other factors, despite a stagnation in Europe and certain emerging markets. In the foreign currency exchange market, the yen became weaker against the U.S. dollar towards the end of the second quarter of fiscal 2015.

Under these circumstances, consolidated net sales in the first half of fiscal 2015 increased by 9% compared to the same period of the previous fiscal year to 1,972.8 billion yen, due to increased sales in all segments. Consolidated operating income increased by 52% compared to the same period of the previous fiscal year to 121.3 billion yen, due to increased profits in Industrial Automation Systems, Information and Communication Systems and Home Appliances segments.

Consolidated Financial Results by Business Segment (First Half, Fiscal 2015)

Energy and Electric Systems

Total sales:

502.1 billion yen

(5% increase from the same period last year)

Operating income:

12.5 billion yen

(5.8 billion yen decrease 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 power generation business. Sales, meanwhile, saw an increase compared to the same period of the previous fiscal year owing to increases in the public utility systems business in Japan and the rolling-stock equipment business worldwide.

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 both overseas, mainly in China, and in Japan, as well as the weaker yen.

As a result, total sales for this segment increased by 5% from the same period of the previous fiscal year. Operating income decreased by 5.8 billion yen from the same period of the previous fiscal year due primarily to a shift in project portfolios and other factors.

Industrial Automation Systems

Total sales:

609.3 billion yen

(20% increase from the same period last year)

Operating income:

66.2 billion yen

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

The factory automation systems business saw increases in both orders and sales from the same period of the previous fiscal year due to growth in capital expenditures relating to smartphone and automotive industries as well as 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 primarily due to growth in the car sales market outside Japan as well as the positive influence of the weaker yen.

As a result, total sales for this segment increased by 20% from the same period of the previous fiscal year. Operating income increased by 27.3 billion yen from the same period of the previous fiscal year due primarily to an increase in sales.

Information and Communication Systems

Total sales:

248.5 billion yen

(2% increase from the same period last year)

Operating income:

5.3 billion yen

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

The telecommunications equipment business saw an increase in orders compared to the same period of the previous fiscal year. Sales, meanwhile, decreased due primarily to a decrease in demand for communications infrastructure products.

Sales in the information systems and service business remained substantially unchanged compared to sales of the same period of the previous fiscal year.

The electronic systems business saw a decrease in orders compared to the same period of the previous fiscal year due to a decrease in orders for large-scale projects in the electronics business. Sales, meanwhile, experienced an increase compared to the same period of the previous fiscal year due to progress in orders already received for projects in electronics and space systems businesses.

As a result, total sales for this segment increased by 2% compared to the same period of the previous fiscal year. Operating income increased by 2.2 billion yen from the same period of the previous fiscal year due primarily to an increase in sales.

Electronic Devices

Total sales:

106.5 billion yen

(18% increase from the same period last year)

Operating income:

7.7 billion yen

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

The semiconductor business saw increases in both orders and sales from the same period of the previous fiscal year due to an increase in demand mainly for power modules used in automotive, consumer, railcar applications and for optical communication devices, as well as the weaker yen.

The LCD module business saw increases in both orders and sales compared to the same period of the previous fiscal year due to an increase in demand for industrial and automotive-use products.

As a result, total sales for the segment increased by 18% compared to the same period of the previous fiscal year. Operating income increased by 3.2 billion yen compared to the same period of the previous fiscal year due primarily to an increase in sales.

Home Appliances

Total sales:

477.1 billion yen

(4% increase from the same period last year)

Operating income:

35.2 billion yen

(12.0 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 primarily to increased sales in air conditioners in Asian, North American and European markets and in package air conditioners in Japan, as well as the weaker yen, despite impact from the backlash due to the last-minute surge in demand experienced before the rise in consumption tax.

Operating income increased by 12.0 billion yen compared to the same period of the previous fiscal year largely due to an increase in sales.

Others

Total sales:

351.2 billion yen

(14% increase from the same period last year)

Operating income:

8.2 billion yen

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

Sales increased by 14% compared to the same period of the previous fiscal year mainly at affiliated companies involved in materials procurement.

Operating income increased by 3.1 billion yen from the same period of the previous fiscal year due primarily toan increase in sales.

2. Consolidated Second-quarter Results (July 1, 2014 - September 30, 2014)

Net sales:

1,062.1 billion yen

(9% increase from the same period last year)

Operating income:

62.0 billion yen

(36% increase from the same period last year)

Income before income taxes:

78.0 billion yen

(91% increase from the same period last year)

Net income attributable to

Mitsubishi Electric Corp.:

54.8 billion yen

(140% increase from the same period last year)

Consolidated net sales for this quarter was 1,062.1 billion yen, a 9% increase from the same period of the previous fiscal year, due primarily to increased sales in all segments. Consolidated operating income was 62.0 billion yen, increasing by 36% from the same period of the previous fiscal year, with increased profits in all segments.

Consolidated Financial Results by Business Segment (Second Quarter, Fiscal 2015)

Energy and Electric Systems

Total sales:

278.9 billion yen

(7% increase from the same period last year)

Operating income:

4.6 billion yen

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

The social infrastructure systems business saw a decrease in orders from the same period of the previous fiscal year due primarily to a decrease in the power generation business. Sales, meanwhile, increased from the same period of the previous fiscal year primarily due to increases in sales of the public utility systems in Japan and the rolling-stock equipment business worldwide.

The building systems business experienced increases in both orders and sales compared to the same period of the previous fiscal year, owing to growth in the new installation of elevators and escalators both overseas, mainly in China, and in Japan, as well as the weaker yen.

As a result, total sales for this segment increased by 7% from the same period of the previous fiscal year. Operating income increased by 1.1 billion yen from the same period of the previous fiscal year due primarily to an increase in sales.

Industrial Automation Systems

Total sales:

313.9 billion yen

(18% increase from the same period last year)

Operating income:

31.1 billion yen

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

The factory automation systems business saw increases in both orders and sales from the same period of the previous fiscal year due to growth in capital expenditures relating to smartphone and automotive industries as well as 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 primarily due to growth in the car sales market outside Japan, as well as the positive influence of the weaker yen.

As a result, total sales for this segment increased by 18% from the same period of the previous fiscal year. Operating income increased by 7.2 billion yen from the same period of previous fiscal year due primarily to an increase in sales.

Information and Communication Systems

Total sales:

155.9 billion yen

(12% increase from the same period last year)

Operating income:

7.1 billion yen

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

The telecommunications equipment business saw increases in both orders and sales compared to the same period of the previous fiscal year owing primarily to an increase in demand for communications infrastructure products.

The information systems and service business experienced a decrease in sales from the same period of the previous fiscal year mainly due 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 decrease in orders for large-scale projects in the electronics business. Sales, meanwhile, experienced an increase compared to the same period of the previous fiscal year due to progress in orders already received for projects in the electronics and space systems businesses.

As a result, total sales for this segment increased by 12% compared to the same period of the previous fiscal year. Operating income increased by 3.0 billion yen from the same period of the previous fiscal year due primarily to an increase in sales.

Electronic Devices

Total sales:

55.2 billion yen

(15% increase from the same period last year)

Operating income:

3.9 billion yen

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

The semiconductor business saw increases in both orders and sales from the same period of the previous fiscal year due to an increase in demand mainly for power modules used in automotive, consumer, railcar applications and for optical communication devices, as well as the weaker yen.

The LCD module business saw little change in orders, while sales increased compared to the same period of the previous fiscal year due to an increase in demand for industrial and automotive-use products.

As a result, total sales for the segment increased by 15% compared to the same period of the previous fiscal year. Operating income increased by 0.5 billion yen compared to the same period of the previous fiscal year due primarily to an increase in sales.

Home Appliances

Total sales:

242.3 billion yen

(Unchanged from the same period last year)

Operating income:

13.9 billion yen

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

The home appliances business saw little change in sales compared to the same period of the previous fiscal year. This was a result of increased sales in air conditioners in Asian and North American markets, and package air conditioners in Japan, as well as the weaker yen, while there was an impact from the backlash due to the last-minute surge in demand experienced before the rise in consumption tax.

Operating income increased by 3.0 billion yen compared to the same period of the previous fiscal year due to a shift in product mix and other factors.

Others

Total sales:

183.1 billion yen

(10% increase from the same period last year)

Operating income:

6.5 billion yen

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

Sales increased by 10% compared to the same period of the previous fiscal year, mainly at affiliated companies involved in materials procurement.

Operating income increased by 2.2 billion yen compared to the same period of the previous fiscal year due primarily toan 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 increased from the end of the previous fiscal year by 146.3 billion yen to 3,759.3 billion yen. The change in the balance of total assets is mainly attributable to increases in the balances of cash and cash equivalents of 123.7 billion yen, and of work-in-process to be recorded in commensurate with progress in job orders under pertinent contracts by 106.7 billion yen, while trade receivables showed a decrease of 103.7 billion yen resulting from various factors including credit collection.

Total liabilities increased from the end of the previous fiscal year by 7.6 billion yen to 2,020.2 billion yen. The outstanding balances of debts and corporate bonds increased by 7.5 billion yen from the end of the previous fiscal year to 381.0 billion yen. The ratio of interest bearing debt to total assets, however, declined to 10.1%, which was a 0.2 point decrease compared to the end of the previous fiscal year. The outstanding balance of trade payable decreased by 27.0 billion yen, and retirement and severance benefits decreased by 37.3 billion yen, mainly owing to an increase in pension assets resulting from a rise in stock prices, while other current liabilities increased by 58.5 billion yen.

Mitsubishi Electric Corporation shareholders' equity increased by 138.5 billion yen compared to the end of the previous fiscal year to 1,662.8 billion yen. Shareholders' equity ratio, representing a 2.0 point increase compared to the end of the previous fiscal year, was recorded as 44.2%. The changes referred to above are primarily resulting from a recorded net income attributable to Mitsubishi Electric Corporation of 97.8 billion yen, together with an increase in accumulated other comprehensive income by 58.9 billion yen backed by such factors as rising stock prices and the weaker yen, despite a dividend payment of 23.6 billion yen.

Cash flows from operating activities decreased by 67.1 billion yen compared to the same period of the previous fiscal year to 225.2 billion yen (cash in). Cash flows from investing activities increased by 22.2 billion yen compared to the same period of the previous fiscal year to 88.2 billion yen (cash out) resulting primarily from an increase in capital expenditure. Consequently, free cash flow totaled 137.0 billion yen (cash in). Cash flows from financing activities were 21.5 billion yen (cash out) mainly due to dividend payments.

Forecast for Fiscal 2015 (year ending March 31, 2015)

The consolidated earnings forecast for fiscal 2015, ending March 31, 2015, has been revised from the previous forecast announced on July 30, 2014. Operating income and other figures are expected to exceed the previous forecast owing mainly to increases in the Industrial Automation Systems segment, which experienced buoyant demand in capital expenditures for smartphone and automotive related investments, as well as the Home Appliances segment, which showed growth in air conditioners for markets inside and outside Japan.

Consolidated earnings forecast for fiscal 2015

Previous forecast (announced July 30)

Current forecast

Net sales:

4,220.0 billion yen

4,220.0 billion yen

(4% increase from fiscal 2014)

Operating income:

260.0 billion yen

275.0 billion yen

(17% increase from fiscal 2014)

Income before income taxes:

260.0 billion yen

285.0 billion yen

(14% increase from fiscal 2014)

Net income attributable to

Mitsubishi Electric Corp.:

175.0 billion yen

190.0 billion yen

(24% increase from fiscal 2014)

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 '14 1 half (A) (Apr. 1, 2013 - Sept. 30, 2013)

FY '15 1 half (B) (Apr. 1, 2014 - Sept. 30, 2014)

B - A

B/A

(%)

Net sales

1,811.8

1,972.8

160.9

109

Operating income

79.7

121.3

41.6

152

Income before income taxes

83.4

145.9

62.5

175

Net income attributable to Mitsubishi Electric Corp.

48.3

97.8

49.5

202

Basic net income per share attributable to Mitsubishi Electric Corp.

22. yen

45. yen

23. yen

202

2. Consolidated Second-quarter Results

(In billions of yen except where noted)

FY '14 Q2 (A) (Jul. 1, 2013 - Sept. 30, 2013)

FY '15 Q2(B) (Jul. 1, 2014 - Sept. 30, 2014)

B - A

B/A

(%)

Net sales

977.0

1,062.1

85.1

109

Operating income

45.5

62.0

16.5

136

Income before income taxes

40.7

78.0

37.2

191

Net income attributable to Mitsubishi Electric Corp.

22.8

54.8

31.9

240

Basic net income per share attributable to Mitsubishi Electric Corp.

10.yen

25.yen

14. yen

240

Notes: 1) Consolidated financial charts made in accordance with U.S. GAAP.

2) The Company has 171 consolidated subsidiaries.

Consolidated Profit and Loss Statement (First Half, Fiscal 2015)

(In millions of yen)

FY '14 1 half

(Apr. 1, 2013 -

Sept. 30, 2013)

FY '15 1 half

(Apr. 1, 2014 -

Sept. 30, 2014)

B - A

B/A (%)

(A)

% of total

(B)

% of total

Net sales

1,811,899

100.0

1,972,838

100.0

160,939

109

Cost of sales

1,305,419

72.0

1,382,107

70.1

76,688

106

Selling, general and

administrative expenses

423,932

23.4

468,641

23.7

44,709

111

Loss on impairment of long-lived

assets

2,818

0.2

699

0.0

(2,119)

25

Operating income

79,730

4.4

121,391

6.2

41,661

152

Other income

25,616

1.4

40,256

2.0

14,640

157

Interest and dividends

4,828

0.3

4,270

0.2

(558)

88

Equity in earnings of affiliated companies

7,885

0.4

12,154

0.6

4,269

154

Other

12,903

0.7

23,832

1.2

10,929

185

Other expenses

21,926

1.2

15,721

0.8

(6,205)

72

Interest

2,428

0.1

1,963

0.1

(465)

81

Other

19,498

1.1

13,758

0.7

(5,740)

71

Income before income taxes

83,420

4.6

145,926

7.4

62,506

175

Income taxes

31,024

1.7

43,167

2.2

12,143

139

Net income

52,396

2.9

102,759

5.2

50,363

196

Net income attributable to

the noncontrolling interests

4,052

0.2

4,905

0.2

853

121

Net income attributable to Mitsubishi Electric Corp.

48,344

2.7

97,854

5.0

49,510

202

Consolidated Comprehensive Income Statement (First Half, Fiscal 2015)

(In millions of yen)

FY '14

1 half (A)

(Apr. 1, 2013 - Sept. 30, 2013)

FY '15

1 half (B)

(Apr. 1, 2014- Sept. 30, 2014)

B - A

Net income

52,396

102,759

50,363

Other comprehensive income (loss), net of tax

Foreign currency translation adjustments

27,193

19,951

(7,242)

Pension liability adjustments

15,735

18,174

2,439

Unrealized gains on securities

34,267

23,265

(11,002)

Unrealized gains (losses) on derivative instruments

(74)

(12)

62

Total

77,121

61,378

(15,743)

Comprehensive income

129,517

164,137

34,620

Comprehensive income attributable to

the noncontrolling interests

6,924

7,348

424

Comprehensive income attributable to

Mitsubishi Electric Corp.

122,593

156,789

34,196

Consolidated Profit and Loss Statement (Second Quarter, Fiscal 2015)

(In millions of yen)

FY '14 Q2

(Jul. 1, 2013 -

Sept. 30, 2013)

FY '15 Q2

(Jul. 1, 2014 -

Sept. 30, 2014)

B - A

B/A (%)

(A)

% of total

(B)

% of total

Net sales

977,070

100.0

1,062,190

100.0

85,120

109

Cost of sales

708,442

72.5

754,463

71.0

46,021

106

Selling, general and administrative expenses

220,278

22.5

244,956

23.1

24,678

111

Loss on impairment of long-lived

assets

2,818

0.3

699

0.1

(2,119)

25

Operating income

45,532

4.7

62,072

5.8

16,540

136

Other income

12,902

1.3

23,328

2.2

10,426

181

Interest and dividends

1,651

0.2

1,368

0.1

(283)

83

Equity in earnings of affiliated companies

5,063

0.5

8,559

0.8

3,496

169

Other

6,188

0.6

13,401

1.3

7,213

217

Other expenses

17,665

1.8

7,333

0.7

(10,332)

42

Interest

1,206

0.1

1,010

0.1

(196)

84

Other

16,459

1.7

6,323

0.6

(10,136)

38

Income before income taxes

40,769

4.2

78,067

7.3

37,298

191

Income taxes

15,681

1.6

20,912

1.9

5,231

133

Net income

25,088

2.6

57,155

5.4

32,067

228

Net income attributable to

the noncontrolling interests

2,201

0.3

2,322

0.2

121

105

Net income attributable to Mitsubishi Electric Corp.

22,887

2.3

54,833

5.2

31,946

240

Consolidated Comprehensive Income Statement (Second Quarter, Fiscal 2015)

(In millions of yen)

FY '14 Q2 (A)

(Jul. 1, 2013 -

Sept. 30, 2013)

FY '15 Q2 (B)

(Jul. 1, 2014 -

Sept. 30, 2014)

B - A

Net income

25,088

57,155

32,067

Other comprehensive income (loss), net of tax

Foreign currency translation adjustments

7,741

32,087

24,346

Pension liability adjustments

12,811

16,936

4,125

Unrealized gains on securities

27,455

17,127

(10,328)

Unrealized gains (losses) on derivative instruments

(9)

36

45

Total

47,998

66,186

18,188

Comprehensive income

73,086

123,341

50,255

Comprehensive income attributable to

the noncontrolling interests

3,115

5,589

2,474

Comprehensive income attributable to

Mitsubishi Electric Corp.

69,971

117,752

47,781

Consolidated Balance Sheet

(In millions of yen)

FY '14 (A)

(ended Mar. 31, 2014)

FY ' 15

1 half (B)

(ended Sept. 30, 2014)

B - A

(Assets)

Current assets

2,290,007

2,419,399

129,392

Cash and cash equivalents

418,049

541,838

123,789

Short-term investments

51

51

-

Trade receivables

983,468

880,012

(103,456)

Inventories

602,341

709,072

106,731

Prepaid expenses and other current assets

286,098

288,426

2,328

Long-term trade receivables

4,813

4,505

(308)

Investments

497,510

515,009

17,499

Net property, plant and equipment

649,385

678,230

28,845

Other assets

171,251

142,188

(29,063)

Total assets

3,612,966

3,759,331

146,365

(Liabilities)

Current liabilities

1,494,243

1,533,102

38,859

Bank loans and current portion of long-term debt

162,052

169,426

7,374

Trade payables

758,913

731,859

(27,054)

Other current liabilities

573,278

631,817

58,539

Long-term debt

211,426

211,643

217

Retirement and severance benefits

212,638

175,305

(37,333)

Other fixed liabilities

94,308

100,233

5,925

Total liabilities

2,012,615

2,020,283

7,668

(Equity)

Mitsubishi Electric Corp. shareholders' equity

1,524,322

1,662,857

138,535

Common stock

175,820

175,820

-

Capital surplus

207,089

212,474

5,385

Retained earnings

1,139,738

1,213,977

74,239

Accumulated other comprehensive income (loss)

1,957

60,892

58,935

Treasury stock at cost

(282)

(306)

(24)

Noncontrolling interests

76,029

76,191

162

Total equity

1,600,351

1,739,048

138,697

Total liabilities and equity

3,612,966

3,759,331

146,365

Balance of Debt

373,478

381,069

7,591

Accumulated other comprehensive income (loss):

Foreign currency translation adjustments

38,652

56,203

17,551

Pension liability adjustments

(119,279)

(101,105)

18,174

Unrealized gains on securities

82,636

105,854

23,218

Unrealized gains (losses) on derivative

instruments

(52)

(60)

(8)

Consolidated Cash Flow Statement

(In millions of yen)

FY '14 1 half

(Apr. 1, 2013 - Sept. 30, 2013)

(A)

FY '15 1 half

(Apr. 1, 2014 - Sept. 30, 2014)

(B)

B - A

I

Cash flows from operating activities

1

Net income

52,396

102,759

50,363

2

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

(1) Depreciation of tangible fixed assets and other

61,343

68,891

7,548

(2) Decrease in trade receivables

208,209

112,729

(95,480)

(3) Decrease (increase) in inventories

(18,972)

(97,130)

(78,158)

(4) Increase (decrease) in trade payables

(25,899)

(27,453)

(1,554)

(5) Other, net

15,389

65,496

50,107

Net cash provided by operating activities

292,466

225,292

(67,174)

II

Cash flows from investing activities

1

Capital expenditure

(71,335)

(89,943)

(18,608)

2

Proceeds from sale of property, plant and equipment

2,499

4,842

2,343

3

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

(14,400)

(1,253)

13,147

4

Proceeds from sale of short-term investments and investment securities

20,539

6,326

(14,213)

5

Other, net

(3,292)

(8,172)

(4,880)

Net cash used in investing activities

(65,989)

(88,200)

(22,211)

I+II Free cash flow

226,477

137,092

(89,385)

III

Cash flows from financing activities

1

Proceeds from long-term debt

-

50,243

50,243

2

Repayment of long-term debt

(43,763)

(51,676)

(7,913)

3

Increase (decrease) in bank loans, net

(72,090)

6,320

78,410

4

Dividends paid

(12,881)

(23,615)

(10,734)

5

Purchase of treasury stock

(25)

(24)

1

6

Reissuance of treasury stock

1

0

(1)

7

Other, net

(3,323)

(2,801)

522

Net cash provided by (used in) financing activities

(132,081)

(21,553)

110,528

IV

Effect of exchange rate changes on cash and cash equivalents

10,212

8,250

(1,962)

V

Net increase in cash and cash equivalents

104,608

123,789

19,181

VI

Cash and cash equivalents at beginning of period

298,881

418,049

119,168

VII

Cash and cash equivalents at end of period

403,489

541,838

138,349

Consolidated Segment Information (First Half, Fiscal 2015)

1. Sales and Operating Income by Business Segment

(In millions of yen)

Business Segment

FY '14 1 half

(Apr. 1, 2013 -

Sept. 30, 2013)

FY '15 1 half

(Apr. 1, 2014 -

Sept. 30, 2014)

C - A

D - B

C/A

(%)

Sales (A)

Operating income (B)

Sales (C)

Operating income (D)

Energy and Electric Systems

477,212

18,369

502,194

12,515

24,982

(5,854)

105

Industrial Automation

Systems

506,385

38,923

609,301

66,263

102,916

27,340

120

Information and

Communication Systems

242,563

3,138

248,512

5,340

5,949

2,202

102

Electronic Devices

90,536

4,526

106,525

7,772

15,989

3,246

118

Home Appliances

460,038

23,189

477,100

35,225

17,062

12,036

104

Others

307,502

5,163

351,243

8,273

43,741

3,110

114

Subtotal

2,084,236

93,308

2,294,875

135,388

210,639

42,080

110

Eliminations and other

(272,337)

(13,578)

(322,037)

(13,997)

(49,700)

(419)

-

Total

1,811,899

79,730

1,972,838

121,391

160,939

41,661

109

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

2. Sales and Operating Income by Location

(In millions of yen)

Location

FY '14 1 half

(Apr. 1, 2013 -

Sept. 30, 2013)

FY '15 1 half

(Apr. 1, 2014 -

Sept. 30, 2014)

C - A

D - B

C/A

(%)

Sales (A)

Operating income (B)

Sales (C)

Operating income (D)

Japan

1,494,291

54,897

1,621,249

71,991

126,958

17,094

108

North America

156,879

979

177,027

2,500

20,148

1,521

113

Asia (excluding Japan)

387,326

23,529

486,962

40,101

99,636

16,572

126

Europe

174,145

2,820

193,530

6,788

19,385

3,968

111

Others

23,541

908

21,657

244

(1,884)

(664)

92

Subtotal

2,236,182

83,133

2,500,425

121,624

264,243

38,491

112

Eliminations

(424,283)

(3,403)

(527,587)

(233)

(103,304)

3,170

-

Total

1,811,899

79,730

1,972,838

121,391

160,939

41,661

109

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

3. Sales by Location of Customers

(In millions of yen)

Location

FY '14 1 half

(Apr. 1, 2013 -

Sept. 30, 2013)

FY '15 1 half

(Apr. 1, 2014 -

Sept. 30, 2014)

B - A

B/A (%)

Sales (A)

% of total net sales

Sales (B)

% of total net sales

Japan

1,083,501

59.8

1,120,549

56.8

37,048

103

North America

160,532

8.9

182,907

9.3

22,375

114

Asia

(excluding Japan)

357,631

19.7

447,737

22.7

90,106

125

Europe

167,968

9.3

181,731

9.2

13,763

108

Others

42,267

2.3

39,914

2.0

(2,353)

94

Total overseas sales

728,398

40.2

852,289

43.2

123,891

117

Consolidated total

1,811,899

100.0

1,972,838

100.0

160,939

109

Consolidated Segment Information (Second Quarter, Fiscal 2015)

1. Sales and Operating Income by Business Segment

(In millions of yen)

Business Segment

FY '14 Q2

(Jul. 1, 2013 -

Sept. 30, 2013)

FY '15 Q2

(Jul. 1, 2014 -

Sept. 30, 2014)

C - A

D - B

C/A

(%)

Sales (A)

Operating income (B)

Sales (C)

Operating income (D)

Energy and Electric

Systems

261,074

3,532

278,961

4,685

17,887

1,153

107

Industrial Automation

Systems

266,645

23,841

313,974

31,104

47,329

7,263

118

Information and

Communication Systems

138,822

4,076

155,972

7,104

17,150

3,028

112

Electronic Devices

48,096

3,351

55,290

3,913

7,194

562

115

Home Appliances

241,530

10,959

242,383

13,975

853

3,016

100

Others

166,596

4,350

183,185

6,554

16,589

2,204

110

Subtotal

1,122,763

50,109

1,229,765

67,335

107,002

17,226

110

Eliminations and other

(145,693)

(4,577)

(167,575)

(5,263)

(21,882)

(686)

-

Total

977,070

45,532

1,062,190

62,072

85,120

16,540

109

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

2. Sales and Operating Income by Location

(In millions of yen)

Location

FY '14 Q2

(Jul. 1, 2013 -

Sept. 30, 2013)

FY '15 Q2

(Jul. 1, 2014 -

Sept. 30, 2014)

C - A

D - B

C/A

(%)

Sales (A)

Operating income (B)

Sales (C)

Operating income (D)

Japan

818,020

26,832

889,001

32,848

70,981

6,016

109

North America

74,884

51

86,177

248

11,293

197

115

Asia (excluding Japan)

205,642

12,028

242,536

17,677

36,894

5,649

118

Europe

85,014

1,270

94,211

3,206

9,197

1,936

111

Others

11,548

360

11,763

6

215

(354)

102

Subtotal

1,195,108

40,541

1,323,688

53,985

128,580

13,444

111

Eliminations

(218,038)

4,991

(261,498)

8,087

(43,460)

3,096

-

Total

977,070

45,532

1,062,190

62,072

85,120

16,540

109

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

3. Sales by Location of Customers

(In millions of yen)

Location

FY '14 Q2

(Jul. 1, 2013 -

Sept. 30, 2013)

FY '15 Q2

(Jul. 1, 2014 -

Sept. 30, 2014)

B - A

B/A (%)

Sales (A)

% of total net sales

Sales (B)

% of total net sales

Japan

608,363

62.3

636,420

59.9

28,057

105

North America

77,524

7.9

91,843

8.6

14,319

118

Asia

(excluding Japan)

186,752

19.1

224,916

21.2

38,164

120

Europe

81,454

8.3

87,945

8.3

6,491

108

Others

22,977

2.4

21,066

2.0

(1,911)

92

Total overseas sales

368,707

37.7

425,770

40.1

57,063

115

Consolidated total

977,070

100.0

1,062,190

100.0

85,120

109

Cautionary Statement

The Mitsubishi Electric Group (hereafter "the Group") is involved in development, manufacture and sales in a wide range of fields including Energy and Electric Systems, Industrial Automation Systems, Information and Communication Systems, Electronic Devices and Home Appliances, and these operations extend globally, not only inside Japan, but also in North America, Europe, Asia and other regions. While the statements herein are based on certain assumptions and premises that the Company trusts and considers to be reasonable under the circumstances on the date of announcement, actual operating results are subject to change due to any of the factors as contemplated hereunder and/or any additional factor unforeseeable as of the date of this announcement. Such factors materially affecting the expectations expressed herein shall include but are not limited to the following:

(1) Important trends

The Group's operations may be affected by trends in the global economy, social conditions, laws, tax codes and regulations.

(2) Foreign currency exchange rates

Fluctuations in foreign currency markets may affect the Group's sales of exported products and purchases of imported materials that are denominated in U.S. dollars or euros, as well as its Asian production bases' sales of exported products and purchases of imported materials that are denominated in foreign currencies.

(3) Stock markets

A fall in stock market prices may cause Mitsubishi Electric to record devaluation losses on marketable securities, or cause an increase in retirement benefit obligations in accordance with a decline in the fair value of pension assets.

(4) Supply/demand balance for products and procurement conditions for materials and components

A decline in prices and shipments due to changes in the supply/demand balance, as well as an increase in material prices due to a worsening of material and component procurement conditions,may adversely affect the Group's performance.

(5) Fund raising

An increase in interest rates, the yen interest rate in particular, would increase the Group's interest expenses.

(6) Significant patent matters

Important patent filings, licensing, copyrights and patent-related disputes may adversely affect related businesses.

(7) Environmental legislation or relevant issues

The Group may incur losses or expenses owing to changes in environmental legislation or the occurrence of environmental issues. Such changes in legislation or the occurrence of environmental issues may also impact manufacturing and all corporate activities of the Group.

(8) Flaws or defects in products or services

The Group may incur losses or expenses resulting out of flaws or defects in products or services, and the lowered reputation of the quality of all our products and services may affect the entire Group.

(9) Litigation and other legal proceedings

The Group's operations may be affected by lawsuits or other legal proceedings against Mitsubishi Electric, its subsidiaries and/or equity-method affiliated companies.

(10) Disruptive changes

Disruptive changes in technology, development of products using new technology, timing of production and market introduction may adversely affect the Group's performance.

(11) Business restructuring

The Group may record losses due to restructuring measures.

(12) Information security

The performance of the Group may be affected by computer virus infections, unauthorized access and other unpredictable incidents that lead to the loss or leakage of personal information held by the Group or confidential information regarding the Group's business such as its technology, sales and other operations.

(13) Natural disasters

The Group's operations, particularly manufacturing activities, may be affected by the occurrence of earthquakes, typhoons, tsunami, fires and other large-scale disasters.

(14) Other significant factors

The Group's operations may be affected by the outbreak of social or political upheaval due to terrorism, war, pandemic by new strains of influenza and other diseases, or other factors.

###

About Mitsubishi Electric Corporation

With over 90 years of experience in providing reliable, high-quality products, Mitsubishi Electric Corporation (TOKYO: 6503) is a recognized world leader in the manufacture, marketing and sales of electrical and electronic equipment used in information processing and communications, space development and satellite communications, consumer electronics, industrial technology, energy, transportation and building equipment. Embracing the spirit of its corporate statement, Changes for the Better, and its environmental statement, Eco Changes, Mitsubishi Electric endeavors to be a global, leading green company, enriching society with technology. The company recorded consolidated group sales of 4,054.3 billion yen (US$ 39.3 billion*) in the fiscal year ended March 31, 2014. For more information visit http://www.MitsubishiElectric.com

*At an exchange rate of 103 yen to the US dollar, the rate given by the Tokyo Foreign Exchange Market on March 31,

Click on, or paste the following link into your web browser, to view the associated PDF document.

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This information is provided by RNS
The company news service from the London Stock Exchange
END
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