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MITSUBISHI ELECTRIC REPORTS 1997
FINANCIAL RESULTS
(April 1, 1996 - March 31, 1997)
Tokyo, May 27, 1997 -- Mitsubishi Electric Corporation today
announced its financial results for the fiscal year ended March 31,
1997.
CONSOLIDATED RESULTS
Net sales recorded 3,725.1 billion yen, a 6 % increase from the
previous year's figure of 3,511.3 billion yen, marking the third
consecutive yearly rise. Income before taxes, however, was 67.9
billion yen, down 47 % from last year's 128.4 billion yen, due mainly
to the severely deteriorating semiconductor market and a significant
drop in the sales of audio-visual equipment brought on by intensified
competition. Net income dropped 86% to 8.5 billion yen, compared
to the 59.2 billion yen of fiscal 1996. Net i ncome per share for
the period was 3.97 yen, compared to the 25.59 yen of a year ago.
Dividends per share for the second term of the fiscal year, however,
remained unchanged from the figure for the same term last year,
at 5 yen, based on the company's policy of maintaining a long-term
stable provision of dividends for stockholders. As a result, the
annual dividend per share for fiscal 1997 totaled 10 yen.
Business performance of each product segment in the consolidated
results was as follows:
In the Heavy Machinery group, while equipment for power companies
experienced a severe year due to restraint in domestic investment,
public-use equipment and elevators/escalators, increased sales.
In the Industrial Products and Automation Equipment group, demand
for factory automation products, such as programmable controllers
and inverters increased. Further, products used in auto manufacturing
such as electrical-discharge machines and laser processing machines
also saw increases in sales.
The Information, Telecommunications and Electronic Systems and
Devices group marked a significant drop in sales over the previous
year due to the sharp drop in the prices of DRAMs. However, sales
in information and communication equipment, including cellular telephones
and PCs, expanded, and sales of computer peripherals, particularly
display monitors, grew steadily.
In the Consumer Products group, sales in air conditioners continued
to grow, and refrigerators saw favorable business due to increasing
demand for new models. Wide TVs and projection TVs also increased
sales.
FORECAST FOR NEXT FISCAL YEAR
In the next fiscal year, while a sales expansion is forecasted
in the information and communication equipment sector, including
cellular telephones and PCs, the company overall will face a severe
environment. This can be attributed to expectations of continued
severity in the semiconductor market, increased competition in international
markets on the whole, and the unpredictability of exchange rates.
Mitsubishi Electric is determined to maintain, and further enhance
its long-term business performance through continued efforts in
management efficiency, increases in sales and orders received and
an acceleration of R &D activities.
Forecast consolidated results for fiscal 1998 are as follows:
| [Consolidated figures] |
 |
('98/'97) |
Net sales
Income before income taxes
Net income |
|
3,900.0 bllion yen
85.0 billion yen
20.0 billion yen |
|
(up 5%)
(up 25%)
(up 135%) |
CONSOLIDATED SALES OF MITSUBISHI ELECTRIC CORPORATION
(in billions of yen)
Product Segment
|
Fiscal 1997 |
% of total |
Fiscal 1996 |
% of total |
'97/'96 (%) |
Heavy Machinery
|
905.5 |
23 |
840.3 |
23 |
108 |
Industrial
Products and
Automation
Equipment |
621.3 |
16 |
574.1 |
16 |
108 |
Information,
Telecommunication and
Electronic Systems
and Devices |
1,341.9 |
34 |
1,267.5 |
34 |
106 |
Consumer and Other
Products |
1,090.3 |
27 |
1,012.5 |
27 |
108 |
Sub Total
|
3,959.1 |
100 |
3,694.6 |
100 |
107 |
| Intersegment Sales |
(233.9) |
-- |
(183.2) |
-- |
-- |
| Total Net Sales |
3,725.1 |
-- |
3,511.3 |
-- |
106 |
| Of Which Overseas Sales |
916.9 |
25 |
830.2 |
24 |
110 |
Fiscal 1997: April 1, 1996 - March 31, 1997
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