31 Oct 2013 07:00
FOR IMMEDIATE RELEASE | No. 2797 |
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Mitsubishi Electric Announces Difference of Earnings Forecast and Result for First Half of, and Revises Earnings Forecast for Fiscal 2014
(April 1, 2013-March 31, 2014)
Tokyo, October 31, 2013 - Mitsubishi Electric Corporation (TOKYO: 6503) announced today the difference between its consolidated earnings forecast previously announced on July 31, 2013 and the actual result for the first half of the current fiscal year, from April 1, 2013 to March 31, 2014 (fiscal 2014). It has also revised its earnings forecast for the fiscal 2014.
Difference of Earnings Forecast and Result for First Half of Fiscal 2014 (In millions of yen)
Net Sales | Operating income | Income before income taxes | Net income attributable to Mitsubishi Electric Corp. | Basic net income per share attributable to Mitsubishi Electric Corp. | |
Previous forecast (A) | 1,780,000 | 70,000 | 60,000 | 35,000 | 16.30 yen |
Actual results (B) | 1,811,899 | 79,730 | 83,420 | 48,344 | 22.52 yen |
Differential (B-A) | 31,899 | 9,730 | 23,420 | 13,344 | |
Differential ratio (%) | 1.8% | 13.9% | 39.0% | 38.1% | |
cf. Fiscal 2013 first half actual results | 1,696,018 | 89,614 | 72,793 | 43,619 | 20.32 yen |
The consolidated net sales for the first half of fiscal 2014 exceeded the previous forecast, owing to Energy and Electric Systems segment, with flourishing sales in the overseas elevators and escalators such as in China, and Industrial Automation Systems segment supported by growth in the factory automation systems business in Asia and the automotive equipment business in North America, as well as yen remaining weak against foreign currencies. Consolidated operating income, income before income taxes and net income attributable to Mitsubishi Electric Corporation exceeds the previous forecast mainly owing to improved equity in losses of affiliated companies having turned into earnings, in addition to increase in sales.
Revised Forecast for Fiscal 2014(April 1, 2013 - March 31, 2014) (In millions of yen)
Net Sales | Operating income | Income before income taxes | Net income attributable to Mitsubishi Electric Corp. | Basic net income per share attributable to Mitsubishi Electric Corp. | |
Previous forecast (A) | 3,810,000 | 205,000 | 185,000 | 110,000 | 51.24 yen |
Revised forecast (B) | 3,950,000 | 220,000 | 200,000 | 120,000 | 55.89 yen |
Differential (B-A) | 140,000 | 15,000 | 15,000 | 10,000 | |
Differential ratio (%) | 3.7% | 7.3% | 8.1% | 9.1% | |
cf. Fiscal 2013 actual results | 3,567,184 | 152,095 | 65,141 | 69,517 | 32.38 yen |
Mitsubishi Electric has revised the earnings forecast for fiscal 2014 announced on July 31, 2013. We expect that both sales and profit will exceed the previous forecast mainly in Energy and Electric Systems and Industrial Automation Systems segments.
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 below. |
Cautionary Statement
The Mitsubishi Electric Group is involved in the 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 stretch out 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 to 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 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, as well as an increase in material prices due to a worsening of material and component procurement conditions may adversely affect the Mitsubishi Electric Group's performance.
(5) Fund raising
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) Environmental legislation or relevant issues
We 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 Mitsubishi Electric Group.
(8) Flaws or defects in products or services
We may incurlosses 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 Mitsubishi Electric group.
(9) 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.
(10) Disruptive changes
Disruptive changes in technology, development of products using new technology, timing of production, and market introduction may adversely affect the Mitsubishi Electric Group's performance.
(11) Business restructuring
The Mitsubishi Electric Group may record losses due to restructuring measures.
(12) 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.
(13) Other significant factors
The Mitsubishi Electric 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.
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About Mitsubishi Electric
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 3,567.1 billion yen (US$ 37.9 billion*) in the fiscal year ended March 31, 2013. For more information visit http://www.MitsubishiElectric.com
*At an exchange rate of 94 yen to the US dollar, the rate given by the Tokyo Foreign Exchange Market on March 31, 2013