TOKYO–(BUSINESS WIRE)–Feb 1, 2021–

Mitsubishi Electric Corporation (TOKYO: 6503) announced today its consolidated financial results for the first 9 months and third quarter, ended December 31, 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:
www.MitsubishiElectric.com/news

1. Consolidated First 9 Months Results (April 1, 2020 – December 31, 2020)





Revenue:

2,940.6

billion yen

(10% decrease from the same period last year)

Operating profit:

137.7

billion yen

(24% decrease from the same period last year)

Profit before income taxes:

158.3

billion yen

(20% decrease from the same period last year)

Net profit attributable to Mitsubishi Electric Corp. stockholders:

107.7

billion yen

(33% decrease from the same period last year)

The economy in the first 9 months of fiscal 2021, from April through December 2020, continued to see recovery in China mainly owing to an increase in capital expenditures for fixed assets, particularly in public investment, as an effect of political measures. Japan, the U.S. and Europe experienced a significant economic slowdown due to the serious impact of the novel coronavirus diseases (COVID-19) in the first quarter, but recently saw recovery in the corporate sector in general, while the paces of recovery in the household sector varied depending on the situation of the expansion of COVID-19.


Revenue

Revenue in the first 9 months decreased by 309.5 billion yen from the same period of the previous fiscal year to 2,940.6 billion yen as revenue decreased in all segments due to the serious impact of COVID-19 primarily in the first half. Industrial Automation Systems segment saw a decrease in the factory automation systems business due to stagnation in automotive-related demand worldwide and machinery- and building-related demand in Japan, despite an increase in demand relating to 5G and semiconductor. The automotive equipment business also decreased due to decreased demand for new cars in all regions except for China. Home Appliances segment saw a decrease in air conditioners due to limited economic activities outside Japan and restrained capital expenditures worldwide.


Operating Profit

Operating profit decreased by 44.5 billion yen from the same period of the previous fiscal year to 137.7 billion yen due mainly to decreases in Industrial Automation Systems, Home Appliances and Information and Communication Systems segments despite increases in Energy and Electric Systems and Electronic Devices segments. Operating profit ratio decreased by 0.9% from the same period of the previous fiscal year to 4.7% due primarily to decreased revenue.

The cost ratio increased by 0.5% from the same period of the previous fiscal year due primarily to lowered operation caused by decreased revenue of Industrial Automation Systems segment. Selling, general and administrative expenses decreased by 67.0 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 0.2%. Other profit (loss) decreased by 10.1 billion yen from the same period of the previous fiscal year due primarily to decreased gain on sales of land. Other profit (loss) to revenue ratio deteriorated by 0.2% from the same period of the previous fiscal year.


Profit before income taxes

Profit before income taxes decreased by 40.4 billion yen from the same period of the previous fiscal year to 158.3 billion yen due mainly to a decrease in operating profit despite an improvement in non-operating expenses owing to improved gain/loss on foreign exchange. Profit before income taxes to revenue ratio was 5.4%.


Net profit attributable to Mitsubishi Electric Corporation stockholders

Net profit attributable to Mitsubishi Electric Corporation stockholders decreased by 51.9 billion yen from the same period of the previous fiscal year to 107.7 billion yen due primarily to decreased profit before income taxes and the impact of reduced income taxes as a result of the reorganization of its affiliated company outside Japan in the same period of the previous fiscal year. Net profit attributable to Mitsubishi Electric Corporation stockholders to revenue ratio was 3.7%.

2. Consolidated Third-quarter Results (October 1, 2020 – December 31, 2020)





Revenue:

1,038.5

billion yen

(3% decrease from the same period last year)

Operating profit:

76.3

billion yen

(12% increase from the same period last year)

Profit before income taxes:

82.6

billion yen

(11% increase from the same period last year)

Net profit attributable to Mitsubishi Electric Corp. stockholders:

59.5

billion yen

(13% decrease from the same period last year)


Revenue

Revenue in the third quarter decreased by 29.0 billion yen from the same period of the previous fiscal year to 1,038.5 billion yen due primarily to decreases in Information and Communication Systems, Energy and Electric Systems and Electronic Devices segments despite increases in Industrial Automation Systems and Home Appliances segments. Energy and Electric Systems segment saw a decrease in the building systems business due primarily to delay in construction worldwide caused by the continuing impact of COVID-19. Industrial Automation Systems segment saw an increase in the factory automation systems business due primarily to increased demand relating to 5G and semiconductor outside Japan. Home Appliances segment saw an increase in residential air conditioners in Europe, North America and Japan.


Operating Profit

Operating profit increased by 8.3 billion yen from the same period of the previous fiscal year to 76.3 billion yen due mainly to increases in Industrial Automation Systems, Home Appliances and Energy and Electric Systems segments despite decreases in Information and Communication Systems and Electronic Devices segments. Operating profit ratio increased by 1.0% from the same period of the previous fiscal year to 7.4% due primarily to a shift in project portfolios and reduced cost.

The cost ratio decreased by 1.0% from the same period of the previous fiscal year as due mainly to a shift in project portfolios of Energy and Electric Systems segment and higher operation caused by increased revenue and reduced cost of Home Appliances segment. Selling, general and administrative expenses decreased by 16.6 billion yen from the same period of the previous fiscal year due primarily to reduced cost, and selling, general and administrative expenses to revenue ratio improved by 0.9%. Other profit (loss) decreased by 9.9 billion yen from the same period of the previous fiscal year due mainly to decreased gain on sales of land, and other profit (loss) to revenue ratio deteriorated by 0.9%.


Profit before income taxes

Profit before income taxes increased by 7.9 billion yen from the same period of the previous fiscal year to 82.6 billion yen due mainly to an increase in operating profit. Profit before income taxes to revenue ratio was 8.0%.


Net profit attributable to Mitsubishi Electric Corporation stockholders

Net profit attributable to Mitsubishi Electric Corporation stockholders decreased by 8.9 billion yen from the same period of the previous fiscal year to 59.5 billion yen due primarily to the impact of reduced income taxes as a result of the reorganization of its affiliated company outside Japan in the same period of the previous fiscal year, despite an increase in profit before income taxes. Net profit attributable to Mitsubishi Electric Corporation stockholders to revenue ratio was 5.7%.

Forecast for Fiscal 2021(year ending March 31, 2021)

Mitsubishi Electric’s business performance for fiscal 2021 is expected to exceed the company’s previous forecast considering the improvement of the financial results primarily in Industrial Automation Systems and Home Appliances segments, although the impact of COVID-19 remains. As a result, the company’s consolidated earnings forecast for fiscal 2021, ending March 31, 2021, has been revised from the announcement on October 29, 2020 as stated below.


Consolidated forecast for fiscal 2021






Consolidated

Previous forecast (announced
October 29)

Current forecast

Change from previous forecast

Revenue:

4,050.0 billion yen

4,100.0 billion yen

(8% decrease from fiscal 2020)

Up 50.0 billion yen, or 1%

Operating profit:

150.0 billion yen

190.0 billion yen

(27% decrease from fiscal 2020)

Up 40.0 billion yen, or 27%

Profit before income taxes:

175.0 billion yen

215.0 billion yen

(24% decrease from fiscal 2020)

Up 40.0 billion yen, or 23%

Net profit attributable to Mitsubishi Electric Corp. stockholders:

120.0 billion yen

145.0 billion yen

(35% decrease from fiscal 2020)

Up 25.0 billion yen, or 21%

Exchange rates in and after the fourth quarter of fiscal 2021 is 103 yen to the U.S. dollar, which is 2 yen stronger from the previous announcement; 125 yen to the euro, which is 5 yen weaker from the company’s previous announcement; and 16.0 yen to the Chinese yuan, which is 1 yen weaker from the previous announcement.


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 in the full document.

 

About Mitsubishi Electric Corporation
With 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 “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

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CONTACT: Investor Relations Inquiries

Investor Relations Group, Corporate Finance Division

Mitsubishi Electric Corporation

Tel: +81-3-3218-2391

[email protected]

Media Inquiries

Sachiko Masuda

Public Relations Division

Mitsubishi Electric Corporation

Tel: +81-3-3218-2848

[email protected]

www.MitsubishiElectric.com/news/

KEYWORD: JAPAN ASIA PACIFIC

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SOURCE: Mitsubishi Electric Corporation

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PUB: 02/01/2021 11:25 PM/DISC: 02/01/2021 11:25 PM

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