MEL.L Regulatory News (MEL)

19 Sep 2006 08:16

Mitsubishi Electric Corporation19 September 2006 MITSUBISHI ELECTRIC CORPORATIONPUBLIC RELATIONS DEPARTMENT7-3, Marunouchi 2-chome, Chiyoda-ku, Tokyo, 100-8310 Japan FOR IMMEDIATE RELEASE No. Investor Relations Inquiries Media ContactYasumitsu Kugenuma Travis Woodward Corporate Finance Division Public Relations DivisionMitsubishi Electric Corporation Mitsubishi Electric CorporationTel: +81-3-3218-2391 Tel: +81-3-3218-3380Cad.Irg@rk.MitsubishiElectric.co.jp Travis .Woodward @ eb.MitsubishiElectric.co.jp http://global.mitsubishielectric.com/news/ MITSUBISHI ELECTRIC ANNOUNCES DIVIDEND POLICY AND REVISED SALES AND EARNINGS FORECAST FOR FISCAL 2007 (APRIL 1,2006-MARCH 31,2007) Tokyo, September 19,2006 - Mitsubishi Electric Corporation (President and CEO: Setsuhiro Shimomura) announced today its dividend policy and revised its business performance forecast for fiscal 2007. 1) Consolidated Results:Interim Period (April 2006-September 2006) (billions of yen, percentage) Net Sales Operating Income before Net Income Income income taxes Revised Forecast (A) 1,770.0 87.0 80.0 55.0Previous Forecast (B) 1,750.0 60.0 55.0 35.0Change (A-B) 20.O 27.0 25.0 20.0Percentage of Change 1.1% 45.0% 45.5% 57.1%Fiscal 2006 Interim Actual Results 1,647.8 46.0 50.7 29.1 Fiscal Year (April 2006-March 2007) (billions of yen, percentage) Net Sales Operating Income before Net Income Income income taxes Revised Forecast (A) 3,700.0 180.0 165.0 120.0Previous Forecast (B) 3,700.0 175.0 160.0 105.0Change (A-B) 0 5.0 5.0 15.0Percentage of Change 0.0% 2.9% 3.1% 14.3%Fiscal 2006 Actual Results 3,604.1 157.7 152.3 95.6 2) Non-consolidated Results:Interim Period (April 2006-September 2006) (billions of yen, percentage) Net Sales Ordinary Profit Net IncomeRevised Forecast (A) 1,080,0 60.0 30.0Previous Forecast (B) 1,050.0 30.0 20.0Change (A-B) 30.0 30.0 10.0Percentage of Change 23% 100.0% 50.0%Fiscal 2006 Interim Actual Results 979.1 18.2 12.4 Fiscal Year (April 2006-March 2007) (billions of yen, percentage) Net Sales Ordinary Profit Net IncomeRevised Forecast (A) 2,320.0 100.0 65.0Previous Forecast (B) 2,270.0 75.0 50.0Change (A-B) 50.0 25.0 15.0Percentage of Change 2.2% 33.3% 30.0%Fiscal 2006 Actual Results 2,217.0 75.1 48.5 3) Consolidated and non-consolidated results: explanation for the forecast revision Mitsubishi Electric has revised the earnings forecast for both consolidated and non-consolidated earnings for the first half and entirety of fiscal 2007. Despite effects from continuing high material prices, we expect earnings to exceed our initial forecast due to strong performances in the Energy and Electric Systems segment and the Industrial Automation Systems segment, which is facing steady demand in capital expenditures. 4) Dividend policy for fiscal 2007 Mitsubishi Electric plans to pay an interim dividend of 4 yen per share (record date: September 30, 2006), with the year-end dividend undecided (fiscal 2006 interim and year-end dividends were 3 and 5 yen respectively). Cautionary Statement The expectation of operating results herein and any associated statement to be made orally with respect to the Company's current plans, estimates, strategies and beliefs and any other statements that are not historical facts are forward-looking statements. Words such as "expects", "anticipates", "plans", "believes", "scheduled", "estimated", "targeted" along with any variations of these words and similar expressions are intended to identify forward-looking statements which include but are not limited to projections of revenues, earnings, performance and production. While the statements herein are based on certain assumptions and premises that the Company trusts and considers to be reasonable under the circumstances to the date of announcement, you are requested to kindly take note that 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 Mitsubishi Electric 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 Mitsubishi Electric'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 may adversely affect mainly Mitsubishi Electric's Information and Communication Systems, Electronic Devices, and Home Appliances segments. In addition, an increase in material prices due to a worsening of material and component procurement conditions may adversely affect all of Mitsubishi Electric'soperations. (5) Fund procurement An increase in interest rates, the yen interest rate in particular, would increase Mitsubishi Electric's interest expenses. (6) Significant patent matters Important patent filings, licensing, copyrights and patent-related disputes may adversely affect related businesses. (7) Litigation and other legal proceedings The Mitsubishi Electric Group's operations may be affected by lawsuits or other legal proceedings against Mitsubishi Electric, its subsidiaries and/or equity-method affiliated companies. (8) Disruptive changes Disruptive changes in technology, development of products using new technology, timing of production, and market introduction may adversely affect performance mainly in Mitsubishi Electric's Information and Communication Systems, Electronic Devices, and Home Appliances segments. (9) Business restructuring The Mitsubishi Electric Group may record losses due to restructuring measures. (10) Natural disasters The Mitsubishi Electric Group's operations, particularly manufacturing activities, may be affected by the occurrence of earthquakes, typhoons, tsunami, fires and other large-scale disasters. (11) Other significant factors The Mitsubishi Electric Group's operations may be affected by the outbreak of social or political upheaval due to terrorism, war or other factors. About Mitsubishi ElectricWith over 80 years of experience in providing reliable;, high-quality products to both corporate clients and general consumers all over the world, Mitsubishi Electric Corporation (TSE: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 buildingequipment. The company recorded consolidated group sales of 3,604 billion yen (US$ 30.8billion*) in the fiscal year ended March 31, 2006. For more information visit http://global.mitsubishielectric.com *At an exchange rate of 117 yen to the US dollar, the rate given by the Tokyo Foreign Exchange Market on March 31, 2006. APPENDIX REVISIONS IN EARNINGS FORECASTS FOR FISCAL 2007 1. Sales Income by Business Segment Consolidated Parenthetical figures are compared to FY '06 (billions of yen, percentage) FY 2006 FY 2007 FY 2007 Previous Revised Forecast (b)-(a) Forecast % (a) (b) % Energy and Electric Systems 868.7 21.5 890.0 910.0 (105) 22.0 20.0Industrial Automation Systems 860.1 21.3 860.0 880.0 (102) 21.3 20.0Informationand Communication Systems 644.1 15.9 690.0 690.0 (107) 16.7 0Electronic Devices 170.3 4.2 180.0 180.0 (106) 4.3 0Home Appliances 896.4 22.2 920.0 870.0 (97) 21.0 ^50.0Others 603.5 14.9 600.0 610.0 (101) 14.7 10.0 Subtotal 4,043.4 100.0 4,140.0 4,140.0 (102) 100.0 0 Eliminations ^439.2 - ^440.0 ^440.0 - - 0 Total 3,604.1 - 3,700.0 3,700.0 (103) - 0 2. Operating Income by Business Segment Consolidated Parenthetical figures are compared to FY '06 (billions of yen, percentage) FY 2006 FY 2007 FY 2007 Previous Revised Forecast (b)-(a) Forecast (a) (b) Energy and Electric 25 2 34.0 37.0 (146) 3.0Systems Industrial 95.9 96.0 104.0 (108) 8.0Automation Systems Information and Communication 20.6 25.0 25.0 (121) 0Systems Electronic Devices 13.5 l4.0 14.0 (103) 0Home Appliances 14.9 2O.0 14.0 (94) ^6.0Others 13.3 12.0 12.0 (90) 0 Subtotal 183.7 201.0 206.0 (112) 5.0 Eliminations and Other ^26.0 ^26.0 ^26.0 - 0 Total 157.7 175.0 180.0 (114) 5.0 This information is provided by RNS The company news service from the London Stock Exchange