Re Dividend Policy etc

26 Mar 2007 07:01

Mitsubishi Electric Corporation26 March 2007 MITSUBISHI ELECTRIC CORPORATION FOR IMMEDIATE RELEASE No. 2406 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, March 26, 2007 - Mitsubishi Electric Corporation (President and CEO:Setsuhiro Shimomura) announced today its dividend policy and revised itsbusiness performance forecast for fiscal 2007. 1) Forecast for Consolidated Results: Fiscal Year (April 2006 - March 2007) Figures in the chart below represent revisions from the 3rd quarter earningsrelease in February 2007. (in billions of yen) Net Sales Operating Income before Net Income Income income taxes Revised Forecast (A) 3,820.0 230.0 180.0 122.0Previous Forecast (B) 3,700.0 180.0 165.0 120.0Change (A-B) 120.0 50.0 15.0 2.0Percentage of Change 3.2% 27.8% 9.1% 1.7%Fiscal 2006 Actual Results 3,604.1 157.7 152.3 95.6 Previously forecasted sales increased by 120 billion yen due to continuedstrength in demand for capital investment in Industrial Automation Systems aswell as growth in Home Appliances, Energy and Electric Systems, etc., withoperating income expected to increase by 50 billion yen. As for Other expenses,we expect to report approximately 42 billion in yen in expenses relating tovarious competition law matters involving DRAM in the United States and gasinsulated switchgears in Europe. Although no determination has been rendered inany of these matters, the Company has decided to set reserves for any contingentliabilities. 2) Forecast for Non-consolidated Results: Fiscal Year (April 2006- March 2007) Figures in the chart below represent revisions from the interim earnings released in October 2006. (in billions of yen) Net sales Ordinary profit Net income Revised Forecast (A) 2,340.0 130.0 40.0Previous Forecast (B) 2,320.0 100.0 65.0Change(A-B) 20.0 30.0 (25.0)Percentage of Change 0.9% 30.0% (38.5%)Fiscal 2006 Actual Results 2,217.0 75.1 48.5 Net profit for this fiscal year is expected to fall by 25 billion yen from theprevious forecast. Although ordinary profit increased by 30 billion yen over theprevious forecast, we expect to report an extraordinary loss from expensesrelated to competition laws, etc. (same value as consolidated expenses). 4) Dividend Policy for fiscal 2007 The company plans to pay a year-end dividend of 6 yen per share (record date:March 31, 2007), with an annual dividend of 10 yen. Interim Year end dividend Annual dividendFiscal 2007 4 yen 6 yen 10 yen Fiscal 2006 (actual) 3 yen 5 yen 8 yen Cautionary Statement The expectation of operating results herein and any associated statement to bemade orally with respect to the Company's current plans, estimates, strategiesand beliefs and any other statements that are not historical facts are forward-looking statements. Words such as "expects", "anticipates", "plans", "believes","scheduled", "estimated", "targeted" along with any variations of these wordsand similar expressions are intended to identify forward-looking statementswhich include but are not limited to projections of revenues, earnings,performance and production. While the statements herein are based on certainassumptions and premises that the Company trusts and considers to be reasonableunder the circumstances to the date of announcement, you are requested to kindlytake note that actual operating results are subject to change due to any of thefactors as contemplated hereunder and/or any additional factor unforeseeable asof the date of this announcement. Such factors materially affecting theexpectations expressed herein shall include but are not limited to thefollowing: (1) Important trends The Mitsubishi Electric Group's operations may be affected by trends in theglobal economy, social conditions, laws, tax codes, and regulations. (2) Foreign currency exchange rates Fluctuations in foreign currency markets may affect Mitsubishi Electric's salesof exported products and purchases of imported materials that are denominated inU.S. dollars or euros, as well as its Asian production bases' sales of exportedproducts and purchases of imported materials that are denominated in foreigncurrencies. (3) Stock markets A fall in stock market prices may cause Mitsubishi Electric to recorddevaluation losses on marketable securities, or cause an increase inretirement benefit obligations in accordance with a decline in the fair value ofpension assets. (4) Supply/demand balance for products and procurement conditions formaterials and components A decline in prices and shipments due to changes in thesupply/demand balance may adversely affect mainly Mitsubishi Electric'sInformation and Communication Systems, Electronic Devices, and Home Appliancessegments. In addition, an increase in material prices due to a worsening ofmaterial and component procurement conditions may adversely affect all ofMitsubishi Electric's operations. (5) Fund procurement An increase in interest rates, the yen interest rate in particular, wouldincrease Mitsubishi Electric's interest expenses. (6) Significant patent matters Important patent filings, licensing, copyrights and patent-related disputes mayadversely affect related businesses. (7) Litigation and other legal proceedings The Mitsubishi Electric Group's operations may be affected by lawsuits or otherlegal proceedings against Mitsubishi Electric, its subsidiaries and/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 performancemainly in Mitsubishi Electric's Information and Communication Systems,Electronic Devices, and Home Appliances segments. (9) Business restructuring The Mitsubishi Electric Group may record losses due to restructuring measures. (10) Natural disasters The Mitsubishi Electric Group's operations, particularly manufacturingactivities, may be affected by the occurrence of earthquakes, typhoons, tsunami,fires and other large-scale disasters. (11) Other significant factors The Mitsubishi Electric Group's operations may be affected by the outbreak ofsocial or political upheaval due to terrorism, war or other factors. About Mitsubishi Electric With over 80 years of experience in providing reliable, high-quality products toboth corporate clients and general consumers all over the world, MitsubishiElectric Corporation (TSE:6503) is a recognized world leader in the manufacture,marketing and sales of electrical and electronic equipment used in informationprocessing and communications, space development and satellite communications,consumer electronics, industrial technology, energy, transportation and buildingequipment. The company recorded consolidated group sales of 3,604 billion yen(US$ 30.8billion*) in the fiscal year ended March 31, 2006. For more information visit http://global.mitsubishielectric.com *At an exchange rate of 117 yen to the US dollar, the rate given by the TokyoForeign Exchange Market on March 31, 2006. APPENDIX REVISIONS IN EARNINGS FORECASTS FOR FISCAL 2007 1. Sales 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 21.5 910.0 940.0 (108) 21.9 30.0Industrial Automation Systems 860.1 21.3 880.0 950.0 (110) 22.1 70.0Information and Communication Systems 644.1 15.9 690.0 680.0 (106) 15.8 (10.0)Electronic Devices 170.3 4.2 180.0 180.0 (106) 4.2 0Home Appliances 896.4 22.2 870.0 920.0 (103) 21.4 50.0Others 603.5 14.9 610.0 630.0 (104) 14.6 20.0Subtotal 4,043.4 100.0 4,140.0 4,300.0 (106) 100.0 160.0Eliminations (439.2) - (440.0) (480.0) - - (40.0)Total 3,604.1 - 3,700.0 3,820.0 (106) - 120.0 2. Operating Income by Business Segment (Consolidated) Parenthetical figures are compared to FY '06 (billions of yen, percentage) FY 2006 FY2007 FY2007 Previous Forecast Revised Forecast (b) - (a) (a) (b) Energy and Electric Systems 25.2 37.0 49.0 (194) 12.0Industrial Automation Systems 95.9 104.0 127.0 (132) 23.0 Information and Communication Systems 20.6 25.0 23.0 (111) (2.0)Electronic Devices 13.5 14.0 14.0 (103) 0Home Appliances 14.9 14.0 32.0 (214) 18.0Others 13.3 12.0 12.0 (90) 0Subtotal 183.7 206.0 257.0 (140) 51.0Eliminations and Other (26.0) (26.0) (27.0) - (1.0)Total 157.7 180.0 230.0 (146) 50.0 This information is provided by RNS The company news service from the London Stock Exchange