Mitsubishi Electric Corporation (TOKYO:6503) announced today its consolidated financial results for the first quarter, ended June 30, 2017, of the current fiscal year ending March 31, 2018 (fiscal 2018).

The full document on Mitsubishi Electric’s financial results can be accessed at the following link: www.MitsubishiElectric.com/news

Consolidated Financial Results

Net sales:   1,005.5   billion yen   (8% increase from the same quarter last year)
Operating income: 74.2 billion yen (24% increase from the same quarter last year)
Income before income taxes: 99.2 billion yen (63% increase from the same quarter last year)

Net income attributable to
Mitsubishi Electric Corp.:

67.7 billion yen (58% increase from the same quarter last year)
 

The global economy in the first quarter (from April through June 2017) of fiscal 2018 saw a continuing recovery trend in China, a buoyant expansion in the U.S. and gradual trends of recovery in Japan and Europe. In addition, the yen weakened against the U.S. dollar and the euro in and after May compared to the same period of the previous fiscal year.

Under these circumstances, consolidated net sales in the first quarter increased by 8% compared to the same period of the previous fiscal year to 1,005.5 billion yen with increased sales in all segments. Consolidated operating income increased by 24% compared to the same period of the previous fiscal year to 74.2 billion yen, due primarily to increased profits in the Energy and Electric Systems, Industrial Automation Systems and Electronic Devices segments.

Forecast for Fiscal 2018
As a result of the company’s revised terms of foreign currency rates in which it sees the yen weaker mainly against the euro in and after the second quarter of fiscal 2018, as well as growth expected in the Industrial Automation Systems segment in which it sees an increase in demand for capital expenditures mainly in Asia, the company’s consolidated earnings forecast for the first half of fiscal 2018, ending September 30, 2017, and for fiscal 2018, ending March 31, 2018, have been revised from the announcement on April 28, 2017 as stated below.

Other income increased by 10.0 billion yen due primarily to a higher than expected gain in sales of investment securities in Renesas Electronics Corporation.

First Half of Fiscal 2018 Consolidated Earnings Forecast

Consolidated  

Previous forecast
(announced Apr. 28)

  Current forecast
Net sales: 2,030.0 billion yen 2,080.0 billion yen   (5% increase from the same period last year)
Operating income: 125.0 billion yen 140.0 billion yen   (15% increase from the same period last year)

Income before
income taxes:

135.0 billion yen 160.0 billion yen   (29% increase from the same period last year)

Net income
attributable to
Mitsubishi Electric
Corp.:

  95.0 billion yen   110.0 billion yen   (25% increase from the same period last year)
 

Fiscal 2018 Consolidated Earnings Forecast

Consolidated  

Previous forecast
(announced Apr. 28)

  Current forecast
Net sales: 4,300.0 billion yen 4,370.0 billion yen   (3% increase from the previous fiscal year)
Operating income: 280.0 billion yen 300.0 billion yen   (11% increase from the previous fiscal year)

Income before
income taxes:

300.0 billion yen 330.0 billion yen   (11% increase from the previous fiscal year)

Net income
attributable to
Mitsubishi Electric
Corp.:

  215.0 billion yen   235.0 billion yen   (12% increase from the previous fiscal year)

Exchange rates in and after the second quarter of fiscal 2018 is unchanged from the previous announcement at 105 yen to the U.S. dollar, while exchange rates to the euro have been revised to 120 yen, ten yen weaker than the previous rate.

 

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 at the end.

 

About Mitsubishi Electric Corporation
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 4,238.6 billion yen (US$ 37.8 billion*) in the fiscal year ended March 31, 2017. For more information visit:
www.MitsubishiElectric.com
*At an exchange rate of 112 yen to the US dollar, the rate given by the Tokyo Foreign Exchange Market on March 31, 2017