Mitsubishi Electric Corporation (TOKYO:6503) announced today the difference between its consolidated earnings forecast previously announced on July 28, 2016 and the actual results for the first half of the current fiscal year, from April through September, 2016. The company has also revised its consolidated earnings forecast for the current fiscal year ending March, 2017 (fiscal 2017).

 

Difference in Earnings Forecast and Result for First Half of Fiscal 2017

  

 (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) 1,960,000 90,000 100,000 70,000 32.61 yen

Actual results (B)

1,972,354 121,747 123,726 88,342 41.16 yen
Differential (B-A) 12,354 31,747 23,726 18,342  
Differential ratio (%) 0.6% 35.3% 23.7% 26.2%  
cf. Fiscal 2016 first half actual results   2,063,285   127,014   133,058   92,925   43.29 yen
 

The consolidated net sales for the first half of fiscal 2017 exceeded the previous forecast, owing to buoyancy in automotive equipment sales in the European and North American markets in the Industrial Automation Systems segment, and also to large-scale project sales recorded ahead of schedule in the Energy and Electric Systems segment. Consolidated operating income exceeded the previous forecast in all segments, mainly owing to improved profitability of air conditioners outside Japan in the Home Appliances segment, increased sales in the Energy and Electric Systems and Industrial Automation Systems segments, and positive results of business improvement measures in the Information and Communication Systems segment.

 

Revised Forecast for Fiscal 2017 (April 1, 2016 – March 31, 2017)

  

(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) 4,180,000 235,000 255,000 175,000 81.52 yen
Revised forecast (B) 4,150,000 250,000 265,000 185,000 86.19 yen
Differential (B-A) (30,000) 15,000 10,000 10,000  
Differential ratio (%) (0.7%) 6.4% 3.9% 5.7%  
cf. Fiscal 2016

actual results

  4,394,353   301,172   318,476   228,494   106.43 yen
 

The consolidated net sales forecast for fiscal 2017 is expected to fall below the previous forecast announced on July 28, 2016, mainly as a result of the company’s revised terms of foreign currency rates in which it sees the yen stronger in and after the third quarter of fiscal 2017. Operating income and other figures, however, are expected to exceed the previous forecast mainly in the Home Appliances and Information and Communication Systems segments, despite the negative influence of the change in terms of foreign currency rates.

 
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.
 

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