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MITSUBISHI ELECTRIC REPORTS HALF-YEAR
RESULTS (CONSOLIDATED)
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April 1 through September 30, 1996
Tokyo, November 28, 1996 -- Mitsubishi Electric Corporation
today announced its consolidated financial results for the half-year
ended September 30, 1996. Net income was 6.3 billion yen on net
sales of 1,702.9 billion yen.
Net sales increased 6% from 1,602.7 billion yen during same period of the
previous year, marking increases for three consecutive terms on a first
half-year basis and the all-time high figure as well. While net income
decreased 75% from 25.2 billion yen, income before income taxes dropped 49%
to 27.0 billion yen compared with 53.5 billion yen of the same period last
year. Net income per share for the period was 3.07 yen, compared to 10.97
yen last year.
Background
Public investments and private housing investments in Japan during this
period grew to a high level, due mainly to the effect of stimulative
government economic measures since last fall. Recovery of the economy,
however, was slow because of weak individual consumption and private facility
investments. 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, Mitsubishi Electric, based on the mid-term
management plan, continued its efforts to unify the responsibilities of the
businesses through organizational restructuring and to consolidate business
systems with the aim of taking immediate action to cope with changes in bus
iness environment and market structure. Further, the company endeavored to
facilitate subsidiaries' independence and strengthen their management, as
well as to improve company's sales capabilities and profitability by fully
utilizing the group's all might.
Businesses by segments
Heavy Machinery saw an increase of sales as a whole compared to the
same period last year. While power equipment and public businesses lowered
last year's level affected by the decrease of large projects, elevator and
escalator businesses performed favorably in the South East Asian market, and
electric products for manufacturers expanded sales for steel plant
facilities.
As for Industrial Products and Automation Equipment, electrical
discharge machines and laser processing systems increased sales owing to
renewal demand, and such automation equipment as frequency inverters,
sequencers and servo motors gained expanded sales triggered by investments
for power saving and rationalization. As a result, the whole sales of this
product segment surpassed the figure of the previous year.
Information, Telecommunication and Electronic Systems and Devices
also achieved increased sales compared with last year's record. Although
semiconductors sales dropped because of price down of DRAM chips, computer
products saw better businesses in client/server systems and personal
computers, and peripheral equipments such as display monitors. Cellular
telephones in communication products expanded sales, and space products also
showed a favorable business.
In Consumer Products, air conditioners increased sales and other home
appliances such as refrigerators witnessed smooth performance. Audio visual
products including projection TV sets expanded businesses, leading to a
better sales over the previous year.
Forecast for the full year
The business environment will continue to be severe due to the inactive
semiconductor market, insufficient investments by manufacturers, and the
slow recovery of the economy. Mitsubishi Electric is determined to seek for
an enhanced business performance through an efficient management, by
mobilizing the group's every resource. The company will pursue all
measures, including new product marketing for an expansion in orders to be
received and sales, and the strengthening of cost competitiveness.
Full-year forecast of fiscal 1997(Apr.1996 - Mar.1997) is
expected as follows:
Net sales:
3,690 billion yen
(+5% over same period last year)
Net Income before income taxes:
78 billion yen(-39% over same period last year)
Net income:
25 billion yen (-58% over same period last year)
CONSOLIDATED HALF-YEAR RESULTS OF MITSUBISHI ELECTRIC
(UNAUDITED)
April through September, 1996
(in billions of yen)
|
A)
Apr. - Sept. 1996 |
(B)
Apr. - Sept. 1995 |
(A)/(B) (%) |
Fiscal 1996
(Apr. 1995 - Mar. 1996) |
| Net Sales |
1,702.9 |
1,602.7 |
106 |
3,511.3 |
| Income before Income Taxes |
27.0 |
53.5 |
51 |
128.4 |
| Net Income |
6.3 |
25.2 |
25 |
59.2 |
| Net Income per Share |
3.07 yen |
10.97 yen |
n/a |
25.59 yen |
CONSOLIDATED HALF-YEAR SALES BY PRODUCT SEGMENT
(UNAUDITED)
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 |
389.8 |
21 |
375.0 |
22 |
104 |
| Industrial Products and Automation Equipment |
302.1 |
17 |
279.9 |
17 |
108 |
Information, Telecommunication
and Electronic Systems and Devices
|
581.7 |
32 |
543.8 |
32 |
107 |
| Consumer and Other Products |
540.7 |
30 |
495.1 |
29 |
109 |
Subtotal
|
1,814.4 |
100 |
1,693.9 |
100 |
107 |
| Intersegment Sales |
(111.5) |
n/a |
(91.2) |
n/a |
n/a |
Total Net Sales
|
1,702.9 |
n/a |
1,602.7 |
n/a |
106 |
| of Which Overseas Sales |
449.8 |
26 |
370.3 |
23 |
121 |
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