Mitsubishi Electric Corporation (TOKYO:6503) announced today its consolidated financial results for the first quarter, ended June 30, 2020, of the current fiscal year ending March 31, 2021 (fiscal 2021).
The full document on Mitsubishi Electric’s financial results can be viewed at the following link:
Consolidated Financial Results
(18% decrease from the same period last year)
(63% decrease from the same period last year)
Profit before income taxes:
(55% decrease from the same period last year)
Net profit attributable to Mitsubishi Electric Corp. stockholders:
(58% decrease from the same period last year)
The economy in the first quarter, from April through June 2020, of fiscal 2021 generally saw a severe business environment with the serious impact of the novel coronavirus diseases (COVID-19) resulting in a significant slowdown in both corporate sector and household sector in Japan, the U.S. and Europe, while China experienced a gradual recovery mainly owing to an increase in capital expenditures for fixed assets. There were also signs of bottoming out as measures to fully restart economy were taken in various countries and regions recently.
Revenue in the first quarter decreased by 192.6 billion yen from the same period of the previous fiscal year to 858.1 billion yen as a result of decreased revenue in all segments. Energy and Electric Systems segment saw a decrease in the building systems business that experienced global stagnation of urban development and construction due to the impact of COVID-19, while the social infrastructure systems business increased with transportations systems and power systems businesses remaining buoyant in Japan. Industrial Automation Systems segment saw a decrease of the automotive equipment business due to a slowdown in demand for new cars globally. Home Appliances segment saw a significant decrease in air conditioners as economic activities were considerably limited outside Japan and capital expenditures were restrained in Japan.
Operating profit decreased by 34.7 billion yen from the same period of the previous fiscal year to 20.2 billion yen due mainly to decreased operating profit in Industrial Automation Systems, Home Appliances, and Information and Communication Systems segments, while operating profit increased in Energy and Electric Systems and Electronic Devices segments. Operating profit ratio decreased by 2.8% from the same period of the previous fiscal year to 2.4%.
The cost ratio increased by 0.9% from the same period of the previous fiscal year due primarily to lowered operation caused by decreased revenue of Industrial Automation Systems and Home Appliances segments in addition to the yen appreciating against other currencies. Selling, general and administrative expenses decreased by 27.6 billion yen from the same period of the previous fiscal year due mainly to reduced cost, but selling, general and administrative expenses to revenue ratio increased by 2.0%. Other profit (loss) increased by 0.8 billion yen from the same period of the previous fiscal year, while other profit (loss) to revenue ratio improved by 0.1%.
Profit before income taxes
Profit before income taxes decreased by 32.6 billion yen from the same period of the previous fiscal year to 27.1 billion yen due primarily to a decrease in operating profit despite of an improvement in non-operating expenses owing to decreased loss on foreign exchange. Profit before income taxes to revenue ratio was 3.2%.
Net profit attributable to Mitsubishi Electric Corporation stockholders
Net profit attributable to Mitsubishi Electric Corporation stockholders decreased by 24.8 billion yen from the same period of the previous fiscal year to 17.8 billion yen due mainly to decreased profit before income taxes. Net profit attributable to Mitsubishi Electric Corporation stockholders to revenue ratio was 2.1%.
Forecast for Fiscal 2021
The consolidated earnings forecast for fiscal 2021, ending March 31, 2021, is unchanged from the previous forecast* as stated below.
The previous forecast reflected the sluggish markets in various countries and regions and following recovery process, and was based on the assumption that COVID-19 would have a significant impact on revenue and operating profit until the second quarter. The assumption remains unchanged in the forecast.
The forecast may be modified depending on the global and local situation of the containment of COVID-19.
Consolidated forecast for fiscal 2021
(8% decrease from fiscal 2020)
(54% decrease from fiscal 2020)
Profit before income taxes
(49% decrease from fiscal 2020)
Net profit attributable to Mitsubishi Electric Corp. stockholders
(55% decrease from fiscal 2020)
* See Consolidated Financial Results for Fiscal 2020 dated May 11, 2020 and Additional Disclosure Regarding Consolidated Financial Results for Fiscal 2020 dated June 1, 2020.
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 in the full document.
About Mitsubishi Electric Corporation
With nearly 100 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. Mitsubishi Electric enriches society with technology in the spirit of its corporate statement, “Changes for the Better,” and environmental statement, “Eco Changes.” The company recorded a revenue of 4,462.5 billion yen (U.S.$ 40.9 billion*) in the fiscal year ended March 31, 2020. For more information, please visit www.MitsubishiElectric.com
*U.S. dollar amounts are translated from yen at the rate of ¥109=U.S.$1, the approximate rate on the Tokyo Foreign Exchange Market on March 31, 2020
Investor Relations Group, Corporate Finance Division
Mitsubishi Electric Corporation