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MITSUBISHI ELECTRIC REPORTS HALF-YEAR RESULTS (UNCONSOLIDATED)
April 1 - September 30, 1996
Tokyo, October 25, 1996 -- Mitsubishi Electric Corporation
today announced
its financial results for the half-year period ended September
30,
1996. Orders received during this period amounted to 1,359.2 billion
yen, a 1% increase over the previous year's figure of 1,351.1 billion
yen. Net sales grew 2% to 1,277.2 billion yen from the 1,253.4
billion
yen of last year, marking increases for three consecutive terms
on a first half-year basis and the all-time high figure as well.
Ordinary profits, meanwhile, decreased 36% to 24.0 billion yen from 37.4
billion yen in the same period last year, and net income declined by 13 % to
16.3 billion yen from 18.8 billion yen, both affected by the worsening
semiconductor business. The board of directors resolved that dividend per
share for the period be 5 yen, maintaining the same level as the prior
period.
Background
The Japanese economy during this period witnessed a gradual recovery, due
mainly to the expansion of public business and private housing investments,
which are attributable to the stable exchange rate, the continued low
interest rate policy, and the effect of stimulative economic measures since
last fall. Recovery of the economy was slow, however, due to weak
individual consumption and private facility investments, which derived from
discontinuity in the government's economic policy after the summer.
Overseas, on the other hand, the U.S. economy is forecasted to go through a
period of adjustment in the wake of lasting growth entering into a matured
stage. The European and Asian economies, as well, are becoming stagnant and
dull.
Company situation
Under these circumstances and in order to achieve the goals set by the
mid-term management plan (a five-year plan ending in 1998), Mitsubishi
Electric is continuing its endeavors to improve business capabilities,
enhance profitability and is proceeding with innovations in its business
structure.
Mitsubishi Electric strove for efficient business performance in every area;
including development, production and sales. Mitsubishi Electric also
continued its efforts to unify the responsibilities of the domestic and
overseas businesses through organizational restructuring. Further,
Mitsubishi Electric consolidated business systems, as exemplified by
formation of the Personal Computer Business Division, with the aim of taking
immediate action to cope with changes in the business environment and market
structure.
As for the development of new businesses, in addition to strengthening
product development, the company established a new multi-media firm and
invested in a manufacturer of medical electoronics equipment in order to
strengthen and expand its operational base.
Businesses by segments
Heavy Machinery saw an increase of orders and sales compared with
last year due to exports, involving the building and maintenance industry.
This included elevators and escalators, while power equipment business
posted lower numbers than last year's figures due to delay of domestic
purchase orders, despite the growth of exports. Electric equipment for
manufacturers increased sales but decreased orders due to lowered
investments by domestic steel makers. Public business expanded orders
mainly in water processing equipment. Heavy machinery as a whole surpassed
the prior period's figures in both orders and sales.
As for Industrial Products and Automation Equipment, while automobile
equipment showed slightly decreased orders, factory automation product
orders increased thanks to investments by manufacturers for rationalization
and facility investments at overseas plants of domestic companies.
Electrical discharge machines and laser processing systems saw increased
orders and sales.
Information, Telecommunication and Electronic Systems and Devices
expanded businesses in client/server systems, personal computers and
peripheral equipment. Communication products also performed favorably,
supported by the growing demand for portable telephones, whereas the
semiconductor business was heavily affected by the declining DRAM market.
This product segment in total decreased orders and slightly increased sales
compared with the same period last year.
In Consumer Products, air conditioner and refrigerator sales
witnessed a smooth performance, and audio visual product sales were also
steady due to extra demand created by the Summer Olympic Games, even though
there was fierce price competition. However, increased overseas production
caused a decrease in exports, leading to a slight sales reduction in
consumer products as a whole.
Forecast for the full year
The business environment will continue to be severe due to the inactive
semiconductor market, insufficient facility investments by manufacturers,
and the slow recovery of the economy. Mitsubishi Electric, through the
pursuit of thorough efficiency in management, is determined to make every
effort to further enhance its business performance. To this end, the
company will integrate C.C.V. (Computer, Communication, Audio-Visual), a
focal measure incorporated in the mid-term management plan and the "
VISION 21 Plan," totally systematize key products, nurture future
businesses such as "environmental," "wellness" and
"energy," and strengthen its cost competitiveness both in the
domestic and overseas markets.
Full-year forecast of fiscal 1996 is as follows.
| Net sales: |
2,780.0 billion yen (+1% over the same period last year) |
| Ordinary profit: |
70.0 billion yen (-31% over the same period last year) |
| Net income |
37.0 billion yen (-3% over the same period last year) |
UNCONSOLIDATED HALF-YEAR RESULTS OF MITSUBISHI ELECTRIC
April - September, 1996
(in billions of yen)
| |
Apr. - Sept. 1996 |
Apr. - Sept. 1995 |
(A)/(B) (%) |
Fiscal 1996
(Apr. 1995 - Mar. 1996)
|
| Net Sales |
1,277.2 |
1,253.4 |
102 |
2,751.7 |
| Ordinary Profits |
24.0 |
37.4 |
64 |
100.7 |
| Net Income |
16.3 |
18.8 |
87 |
38.3 |
| Dividend per Share |
5 yen |
5 yen |
n/a |
10 yen |
| Net Income per Share |
7.61 yen |
8.78 yen |
n/a |
17.85 yen |
| Orders Received |
1,359.2 |
1,351.1 |
101 |
2,736.4 |
UNCONSOLIDATED HALF-YEAR SALES BY PRODUCT SEGMENT
April - September, 1996
(in billions of yen)
| Product Segment |
(A)
Apr. - Sept. 1996
|
% of total |
(B)
Apr. - Sept. 1995 |
% of total |
(A)/(B)
(%)
|
| Heavy Machinery |
303.1 |
24 |
296.0 |
24 |
102 |
| Industrial Products and Automation Equipment |
255.2 |
20 |
242.7 |
19 |
105 |
| Information, Telecommunication and Electronic Systems and Devices |
486.3 |
38 |
479.6 |
38 |
101 |
| Consumer Products |
232.5 |
18 |
234.9 |
19 |
99 |
Total Net Sales
|
1,277.2 |
100 |
1,253.4 |
100 |
102 |
| of Which Exports |
291.1 |
23 |
286.8 |
23 |
101 |
|
