RNS Number:4691R
Mitsubishi Electric Corporation
30 October 2003
MITSUBISHI ELECTRIC ANNOUNCES CONSOLIDATED AND NON-CONSOLIDATED HALF-YEAR RESULTS FOR THE PERIOD OF
APRIL 1,2003 - SEPTEMBER 30,2003
TOKYO, October 30, 2003 - Mitsubishi Electric Corporation today announced its
consolidated and non-consolidated financial results for the half-year ended
September 30, 2003 as follows:
Consolidated:
Net sales 1.5641 trillion yen (5% decrease from the previous semiannual period)
Operating income 12.0 billion yen (48% decrease from the previous semiannual period)
Income before income taxes 16.8 billion yen (43% increase from the previous semiannual period)
Net income 3.8 billion yen (44% decrease from the previous semiannual period)
Non-consolidated:
Net sales 911.3 billion yen (13% decrease from the previous semiannual period)
Operating income -3.0 billion yen
Ordinary profit 21.4 billion yen (136% increase from the previous semiannual period)
Net income 17.2 billion yen (89% increase from the previous semiannual period)
The business environment during the fiscal 2004 interim period saw a recovery
centering on the corporate sector in the U.S. together with the expansion of
economics in parts of Asia. However, as a whole, the feeling of recovery in the
global economy was weak. Furthermore, though the deceleration trend of the
Japanese economy appeared to be halting, severe economic conditions continued
with the advancing of deflation, a lack of power in the recovery of domestic
demand and other factors.
Under these circumstances, Mitsubishi Electric spun off its semiconductor
business centered on system LSIs and formed a joint venture, Renesas Technology
Corporation (hereafter Renesas), with Hitachi, Ltd. on April 1, 2003. In
addition, we spun off the industrial electric and automation systems business
for manufacturing plants and set up a joint venture, Toshiba Mitsubishi Electric
Industrial Systems Corporation, with Toshiba Corporation on October 1, 2003. We
have thus continued to focus on improving and reinforcing the profitability of
each business by promoting the structural reformation of business. Furthermore,
we have continued to pursue with resolute corporate wide management improvement
measures including activities to improve our financial base such as the "EA21
Activities" to reduce assets and fixed costs, "E SIGMA 21 Project Activities" to
reform our materials procurement structure and "Inventory Reduction Project." In
addition to this, we arc also implementing a growth strategy built around the
two wheels of the "VI Strategy" and "AD Strategy" towards the increasing of
added value. These measures arc being implemented to heighten performance and
our financial standing.
Consolidated Results by Business Segment
In the Energy and Electric Systems segment, compared to the corresponding period
in the previous year, sales decreased by 2% to 324.7 billion yen and operating
loss was 5.7 billion yen, a decrease of 14.7 billion yen compared to the
corresponding period of the previous fiscal year.
Social infrastructure systems fell short of their year-ago levels both for
orders and net sales due to the spinning off of our power systems and substation
businesses, along with the restraining of private capital investment by Japanese
power companies and the manufacturing industry, the suppression of public works
spending, and the shrinking of major overseas construction.
Building systems posted a level of orders similar to last year despite slumping
new demand for elevators and escalators in Japan. However, an increase in orders
in South Korea and the Middle East led to an increase in net sales from the
corresponding period of the previous fiscal year.
As a result, total sales for this segment showed a 2% decrease, while operating
income showed a decrease of 14.7 billion yen due to decreased sales and a drop
in sales prices.
The Industrial Automation Systems segment, compared to the corresponding period
in the previous year, experienced a 9% increase in sales to 336.8 billion yen
while operating income decreased by 1.9 billion yen to 26.0 billion yen.
The FA systems business saw an increase from the corresponding period of the
previous fiscal year in both orders and sales through increases in semiconductor
and liquid crystal panel manufacturing equipment for the domestic market, and
programmable controllers, servo motor systems and numerical controllers for the
automotive market in Taiwan, South Korea, China and other parts of Asia.
The automotive equipment business posted an increase from the corresponding
period of the previous fiscal year in net sales due to increases in car
navigation systems, ETC onboard units, as well as alternators and starters for
overseas automobile manufacturers.
As a result, total sales for this segment increased by 9% over the previous
year, while operating income showed a decrease of 1.9 billion yen due to price
decrease and other factors.
The Information and Communication Systems segment posted an increase in net
sales of 4% to 331.6 billion yen and an operating loss of 3.4 billion yen, which
was an improvement of 3.1 billion yen from the corresponding period of the
previous fiscal year.
In the telecommunications equipment business, demand fell for wireless base
stations and this led to a drop in orders from the corresponding period of the
previous fiscal year. However, the increase in exports of wireless base stations
led to greater net sales than the same period last year.
In the information systems and services business, there was an increase in
businesses related to outsourcing of information systems and systems integration
and net sales surpassed the same period of last year.
In the space business, we are in a period between large governmental projects,
which led to decreases in both orders and net sales compared to last year. As
for the defense electronics business, the decrease in major projects led to a
drop in orders from the corresponding period of the previous fiscal year but net
sales exceeded the same period of last year.
As a result, total sales for this segment showed an increase of 4% from the
corresponding period of the previous fiscal year, while operating income
improved by 3.1 billion yen due to increased sales and other factors.
The Electronic Devices segment recorded net sales of 87.3 billion yen, a 61%
decrease from the corresponding period of the previous fiscal year, while
operating income improved by 20.5 billion yen to a loss of 4.5 billion yen.
The semiconductor business posted increases in laser diodes for recordable DVD
players, semiconductor manufacturing equipment and power modules for industrial
machinery bound for Asia centering on China. However, the impact from spinning
off the system LSI and system memory businesses led to decreases from the
corresponding period of the previous fiscal year in both orders and net sales.
On the liquid crystal business front, FA display devices and other products for
the industrial sector did well, but the drop in prices within the general use
panel sector and other factors led to decreases from the corresponding period of
the previous fiscal year in both orders and net sales.
As a result, total sales for this segment showed a decrease of 61% from the
previous year, while operating income improved by 20.5 billion yen due to the
improved performance of the semiconductor business and other factors.
In the Home Appliances segment, compared to the corresponding period in the
previous year, net sales increased 9% to 403.4 billion yen while operating
income was 9.6 billion yen, a 13.3 billion yen decrease.
In the home appliance business, sales in ventilators, hot water heaters, solar
power generation systems and other residential home equipment for the domestic
market, DVD-related equipment, and packaged and home air conditioners for Europe
increased. These increases offset the decrease in home air conditioners,
refrigerators and other appliances for the domestic market, leading to an
overall sales increase from the previous year.
As a result, total sales for this segment increase by 9% from the corresponding
period of the previous fiscal year, while operating income decreased by 13.3
billion yen due to decreased sales prices and other factors.
In the Others segment, compared to the corresponding period in the previous
year, net sales decreased by 9% to 240.7 billion yen while operating income
decreased 3.7 billion yen to 2.2 billion yen.
Overall sales decreased due mainly to the change of our credit subsidiary into
an equity method company.
As a result, total sales for this segment decreased by 9% from the corresponding
period from the previous fiscal year, while operating income decreased by 3.7
billion yen due to the decreased in sales and other factors.
Dividend
We must forgo the interim shareholder dividend for the current year.
Furthermore, we plan to implement year-end dividend after confirming the overall
performance for the year. We will continue to steadily strengthen our financial
position and enhance profitability, which will improve the profit of
shareholders.
Financial Position (consolidated basis)
Assets, liabilities and shareholders' equity:
The company's total balance of assets and liabilities declined greatly from the
end of the previous fiscal year, due to progress in asset reduction, spinning
off of our semiconductor business centering on system LSIs to form Renesas, and
other factors.
The company's total asset declined by 369.4 billion yen from the end of the
previous fiscal year to 3,304.1 billion yen. Major changes included reductions
of 190.1 billion yen in trade receivables, 53.7 billion yen in inventories, and
133.4 billion yen in tangible fixed assets, respectively, while investments
increased by 76.5 billion yen due to the appropriation of investment in Renesas.
As for liabilities, the balance of total interest bearing debt outstanding fell
188.1 billion yen from the end of the previous fiscal year to 996.0 billion yen,
reducing the loan ratio to 30.1% (an improvement of 2.1 point from the end of
the previous fiscal year). Trade payables declined by 93.9 billion yen, while
employee retirement and severance benefits reserve decreased by 96.9 billion
yen.
As for shareholders' equity, consolidated retained earnings decreased 2.6
billion yen due to the appropriation of net income of 3.8 billion yen and the
dividend payment of 6.4 billion yen. Meanwhile, a reduction of exemption in
minimum pension liability adjustments, along with an increase of net unrealized
gains on securities and other factors, have resulted in total increase of
shareholders' equity balance to 429.4 billion yen, 34.8 billion yen more than
the end of the previous fiscal year, increasing the company's shareholders'
equity ratio by 2.3 points to 13.0%.
Cash flow
The company's cash flows from operating activities increased 17.5 billion yen
from the corresponding period of the previous fiscal year to 142.2 billion yen
(provided). Meanwhile, cash flows from investment activities decreased 4.6
billion yen to 35.3 billion yen (used), mainly due to the reduction of capital
expenditure in the semiconductor business that had been spun off to Renesas. As
a result, the free cash flow achieved an income of 106.8 billion yen.
On the other hand, cash flows from financial activities represented net cash
used of 111.1 billion yen, mainly due to the progress in loan repayment and bond
redemptions for improved financial standing.
Annual Forecast for Fiscal 2004 (The year ending March 31st, 2004)
Expectations for an economic recovery is growing both in Japan and overseas, but
the severe business climate is expected to continue with lack of transparency
regarding the period of a full recovery in demand, further intensification of
global competition and concern over foreign exchange trends.
Under these circumstances, the Mitsubishi Electric Group will continue to seek
to further improve performance and our financial base while reinforcing our
management foundation. The steps being taken to do so include improving and
reinforcing profitability in each segment and continuing to promote management
improvement measures across the corporation, and also steadily implement growth
strategies to expand added value.
Our fiscal 2004 performance forecast as of now is as follows. No change has been
made from the revised values of our performance forecast announced on September
22, 2003.
Consolidated:
Net sales 3.3000 trillion yen (9% decrease year-on-year)
Operating income 80.0 billion yen (27% increase year-on-year)
Income before income taxes 20.0 billion yen (708% increase year-on-year)
Net income 12.0 billion yen
Non-consolidated:
Net sales 2.0500 trillion yen (12% decrease year-on-year)
Operating income 30.0 billion yen (49 times year-on-year)
Ordinary profit 35.0 billion yen (32% increase year-on-year)
Net income 29.0 billion yen
Note: The forecast of results above is based on assumptions deemed reasonable by Company at the present time, and actual
results may differ significantly from forecasts.
MANAGEMENT POLICY
Management Policy
The Mitsubishi Electric Group intends to contribute to a new society, industry
and daily life based on the spirits of its corporate statement "Changes for the
Better" as a foundation from which to achieve a "better tomorrow." With this end
in view, the group will seek to establish a solid management base and
sustainable growth with the help of "balanced management" from the three
critical areas of "growth," "profitability and efficiency" and "soundness."
Furthermore, we seek to fulfill the expectations of our customers, shareholders
and other stakeholders by channeling our efforts to further enhance corporate
value through our self-reformation as a strong conglomerate of electric and
electronic businesses with robust synergy.
Policy on Profit Sharing
With the ultimate aim of enhancing corporate value, our basic policy is to seek
a comprehensive improvement in enhancing shareholder value by distributing as
much profit as may be permitted by our current year earnings position, while at
the same time retaining sufficient profit to strengthen the group's financial
position.
Policy on Reducing Minimum Stock Purchase Requirement
Mitsubishi Electric recognizes that one of its most important management goals
must be to enhance corporate value along with the number of stable, long-term
shareholders. With this in mind, we will continue carrying out a meticulous
study of the overall benefits and costs of reducing the size of purchase
requirements for our stock-trading units.
Issues the Company Must Confront
The Mitsubishi Electric Group will strive to further improve its performance and
financial base and reinforce its management foundation. This shall be done by
resolutely pursuing the following management measures from the three
perspectives of a balanced management -"growth," "profitability and efficiency"
and "soundness."
*We will continue to pursue corporate wide management improvement measures
including dramatic restructuring and fixed cost structure reformation, cost
reduction promotion, and improving the soundness of our financial structure in
line with changes in the business environment.
*We will pursue a growth strategy built around the two elements of our "VI
strategy" (reinforcing individual business strategies) and "AD strategy"
(reinforcing the solutions business across multiple business fields) with
superior market businesses as a core, and applying our synergy of broad business
areas.
*We will more strongly implement a global management policy that includes the
pursuit of global integration, in which we aim to establish optimum business
structure from a global viewpoint, combined with strengthening our research and
development, marketing and finance, etc.
*We will strive to further strengthen our environmental management built around
the implementation of the "4th Environment Plan" (Fiscal 2004-2006), the
voluntary measures of our group, as we aim to realize a sustainable society.
Basic Thinking on Corporate Governance and Status of the Implementation of
Measures
With the approval of our general shareholders' meeting held in June 2003,
Mitsubishi Electric has reformed its management structure by transforming to a
"company with Committee" structure, This transformation will further heighten
the dynamistic and transparency of our management while also be used to
reinforce supervision on management and achieve sustainable growth.
By separating the supervision of management and execution functions
traditionally handled by the board of directors, the board of directors will now
handle the supervision of management function and the executive officers will
handle the management execution function. The broad authority that had been the
exclusive realm of the board of directors has been transferred to the executive
officers. Furthermore, the auditing committee, nomination committee, and
compensation committee have been established as internal organizations of the
board of directors with a majority of members comprised of outside directors.
A key characteristic of our management structure is separation of the chairman
of the board, who is the head of our management supervisory function, and the
president, who is the chief executive officer. Clear-cut implementation to the
separation of management supervision and execution have made our corporate
governance much more effective.
In addition, we have established a board of executive officers for executive
officers to debate and decide important items related to the execution of
management in their role of responsibility for making decisions on and
implementing execution of operations. This was done from the perspectives of
having them all participate in management and share information, to pursue
management synergy effects and multiple risk management aspects.
Further, our five outside directors arc providing advice and supervision to our
company's management from an objective perspective.
Furthermore, there is no special interest relationship between our company and
any of our outside directors.
CONSOLIDATED AND NON-CONSOLIDATED FINANCIAL RESULTS
1. CONSOLIDATED HALF-YEAR RESULTS OF MITSUBISHI ELECTRIC
(In billions of yen except where noted)
FY'04 1st half FY'03 1st half
(A) (B) (A)/(B) Fiscal 2003
April 1, 2003 - April 1,2002- (%) (Apr.1, 2002-Mar.31,2003
Sept. 30, 2003 Sept. 30, 2002
Net sales 1,564.1 1,638.9 95 3,639.0
Operating income 12.0 23.2 52 63.1
Income before
income taxes 16.8 11.7 143 2.4
Net income (loss) 3.8 6.7 56 (11.8)
Net income (loss)
per share 1.78 yen 3.16 yen 56 (5.51) yen
Fiscal 2004 1st half: April 1, 2003 - September 30, 2003
Note: 1) Consolidated financial charts made according to U.S. GAAP.
2) Company has 135 consolidated subsidiaries.
2 NON-CONSOLIDATED HALF-YEAR RESULTS OF MITSUBISHI ELECTRIC
(In billions of yen except where noted)
FY'04 1st half FY'03 1st half
(A) (B) (A)/(B)
April 1,2003- April 1,2002 Fiscal 2003
Sept. 30, 2003 Sept. 30, 2002 (Apr. 1, 2002-Mar. 31, 2003)
Net sales 911.3 1,045.0 87 2,319.2
Ordinary profit 21.4 9.0 236 26.4
Net income
(loss) 17.2 9.1 189 (12.1)
Dividend per share None None - Annual dividend 3.00 yen
(Interim dividend) (Interim dividend) (Biannual dividend) 3.00 yen
Net income (loss)
per share 8.02 yen 4.24 yen 189 (5.67) yen
Fiscal 2004 1st half: April 1, 2003 - September 30, 2003
CONSOLIDATED PROFIT AND LOSS STATEMENT
(In millions of yen)
FY'04 1sthalf FY'03 1st half FY'03
(April 1,2003- (April 1.2002- (April 1,2002-
Sept. 30, 2003) A Sept. 30, 2002) B March 31,2003)
%of %of A/B %of
A-B
total total total
Net sales 1,564,121 100.0 1,638,967 100.0 (74,846) 95 3,639,071 100.0
Cost of sales 1,195,563 76.4 1,221,785 74.6 (26,222) 98 2,782,180 76.5
Selling, general
and administrative
expenses 356,461 22.8 393,981 24.0 (37,520) 90 793.751 21.8
Operating income 12,097 0.8 23,201 1.4 (11,104) 52 63,140 1.7
Non-operating
income 29,840 1.9 32,515 2.0 (2,675) 92 57,236 1.6
Interest and
Dividends 4,393 0.3 7,151 0.4 (2,758) 61 11,486 0.3
Other income 25,447 1.6 25,364 1.6 83 100 45,750 1.3
Non-operating 25,083 1.6 43,950 2.7 (18,867) 57 117,901 3.2
expenses
Interest 8,296 0.5 10,275 0.6 (1,979) 81 20,407 0.5
Other expenses 16,787 1.1 33,675 2.1 (16,888) 50 97,494 2.7
Income before
income taxes 16,854 1.1 11,766 0.7 5.088 143 2,475 0.1
Income taxes 11,332 0.8 6,681 0.4 4,651 170 16,332 0.5
Equity in earnings
(losses) of
affiliated companies (1,699) (0.1) 1.692 0.1 (3,391) - 2,032 0.1
Net income (loss) 3,823 0.2 6,777 0.4 (2,954) 56 (11,825) (0.3)
Fiscal 2004,1st half: April 1, 2003 - September 30, 2003
CONSOLIDATED BALANCE SHEETS
(In millions of yen)
FY'04 FY'03
1st half (A) (B) ending
ending Sept. March 31st (A)- B)
30th, 2003 2003
(Assets)
Current assets 1,706,364 1,937,537 (231,173)
Cash and cash equivalents 357,483 363,595 (6,112)
Short-term investments 28,233 22,523 5,710
Trade receivables 637,077 821,943 (184,866)
Inventories 457,005 510,750 (53,745)
Prepaid expenses and other
current assets 226,566 218,726 7,840
Long-term trade receivables 14,486 19,795 (5,309)
Investments 436,525 359,961 76,564
Net property, plant and 594,314 727,770 (133,456)
equipment
Other assets 552,480 628,574 (76,094)
Total assets 3,304,169 3,673,637 (369,468)
(Liabilities and shareholders' equity)
Current liabilities 1,314,365 1,589,322 (274,957)
Bank loans and current 395,062 555,863 (160,801)
portion of long-term debt
Trade payables 556,790 650,696 (93,906)
Other current liabilities 362,513 382,763 (20,250)
Long-term debt 600,967 628,361 (27,394)
Employee retirement and 898,795 995,765 (96,970)
severance benefits
Other fixed liabilities 13,391 11,596 1,795
Minority interests 47,195 54,006 (6,811)
Shareholders' equity 429,456 394,587 34,869
Capital 175,820 175,820 -
Capital surplus 210,671 210,671 -
Retained earnings 348,234 350,851 (2,617)
Accumulated (304,918) (342,687) 37,769
other comprehensive income (loss)
Treasury stock at cost (351) (68) (283)
Total liabilities and 3,304,169 3,673,637 (369,468)
stockholders' equity
Balance of Debt 996,029 1,184,224 (188,195)
Accumulated other comprehensive income (loss):
Foreign currency translation adjustments (7,591) (686) (6,905)
Minimum pension liability adjustments (317,089) (346,546) 29,457
Net unrealized gains on securities 19,762 4,545 15,217
CONSOLIDATED CASH FLOW STATEMENT (In millions of yen)
FY'04 FY '03
1st half 1st half FY' 03
(A) (B) (April 1,
(April 1, (April 1, A-B 2002-March
2003- 2002- 31,
Sept. 30, Sept. 30, 2003)
2003) 2002)
I Cash Hows from operating activities
1 Net income (loss) 3,823 6,777 (2,954) (11,825)
2 Adjustments to reconcile net income (loss) to
net cash provided by operating activities
(1) Depreciation of tangible fixed assets 50,371 102,046 (51,675) 208,884
(2) Deferred income taxes (increase) (1,435) (16,346) 14,911 (27,669)
(3) Decrease (increase) in trade receivables 133,158 119,142 14,016 (36,183)
(4) Decrease (increase) in inventories 6,259 (4,601) 10,860 96,715
(5) Decrease (increase) in prepaid expenses and other assets (16,642) 6,637 (23,279) (1,702)
(6) Increase (decrease) in trade payables (47,455) (107,353) 59,898 53,813
(7) Increase (decrease) in other liabilities 24,238 20,145 4,093 (38,877)
(8) Other, net (10,057) (1,713) (8,344) (4,691)
Net cash provided by operating activities 142,260 124,734 17,526 238,465
II Cash flows from investing activities
1 Capital expenditure (43,194) (62,238) 19,044 (133,223)
2 Proceeds from sale of property, plant and 7,829 2,620 5,209 17,449
equipment
3 Purchase of short-term investments and
investment securities (37,675) (8,228) (29,447) (37,068)
4 Proceeds from sale of short-term investments 34,581 28,811 5,770 56,463
and investment securities
5 Other, net 3,080 (1,024) 4,104 2,694
Net cash used in investing activities (35,379) (40,059) 4,680 (93,685)
I + II Free cash flow 106,881 84,675 22,206 144,780
III Cash flows from financing activities
1 Proceeds from long-term debt 83,381 128,495 (45,114) 304,814
2 Repayment of long-term debt (186,979) (160,446) (26,533) (415,445)
3 Increase (decrease) in bank loans, net (785) (138,823) 138,038 (118,853)
4 Dividends paid (6,440) - (6,440) -
5 Purchase of treasury stock (283) - (283) (491)
Net cash provided by (used in) financing activities (111,106) (170,774) 59,668 (229,975)
IV Effect of exchange rate changes on cash and cash (1,887) (6,152) 4,265 (6,100)
equivalents
V Net increase (decrease) in cash and cash equivalents (6,112) (92,251) 86,139 (91,295)
VI Cash and cash equivalents at beginning of period 363,595 454,890 (91,295) 454,890
VII Cash and cash equivalents at the end of period 357,483 362,639 (5,156) 363,595
CONSOLIDATED SEGMENT INFORMATION
1. Business Segment
(In millions of yen)
FY'04 1st half FY'03 1st half FY'03
(April 1,2003- (April 1,2002- (April, 2002-March 31,2003)
Sept.30,2003) Sept.30,2002) (A)/(B)
Business Segment Operating Operating (%) Operating
% of income % of income % of income
Sales total (loss) Sales total (loss) Sales total (loss)
(A) (B)
Energy and Electric
Systems 324,760 18.8 (5,713) 332,598 18.3 8,991 98 861,120 21.5 59,406
Industrial
Automation 336,815 19.5 26,022 307,740 16.9 27,979 109 639,422 16.0 57,969
Systems
Information and 331,625 19.2 (3,428) 318,690 17.5 (6,530) 104 686,432 17.2 (27,273)
Communication Systems
Electronic Devices 87,338 5.1 (4,599) 225,321 12.4 (25,150) 39 460,469 11.5 (53,078)
Home Appliances 403,420 23.4 9,624 369,235 20.3 23,019 109 789,149 19.7 36,195
Others 240,770 14.0 2,256 266,000 14.6 6,051 91 566,199 14.1 11,080
Sub Total 1,724,728 100.0 24,162 1,819,584 100.0 34,360 95 4,002,791 100.0 84,299
Elimination and (160,607) - (12,065) (180,617) - (11,159) - (363,720) - (21,159)
Others
Consolidated Total 1,564,121 - 12,097 1,638,967 - 23,201 95 3,639,071 - 63,140
Fiscal 2004, 1st half: April 1, 2003 - September 30, 2003
*Note: Intersegment sales are included in the above chart.
2. Geographic Segment
(In millions of yen)
FY'04 1st half FY'03 1st half A/B FY 2003
Sales (A) Operating Sales (B) Operating (%) Sales Operating
income income income
(loss) (loss)
Japan 1,315,178 (6,766) 1,436,916 2,961 92 3,168,639 42,559
North America 114,327 1,214 149,406 2,364 77 301,034 3,628
Asia 202,212 12,807 154,951 12,061 131 384,891 23,189
(except Japan)
Europe 99,187 1,455 100,787 2,009 98 206,946 (9,921)
Others 10,137 481 6,960 126 146 15,268 471
Sub Total 1,741,041 9,191 1,849,020 19,521 94 4,076,778 59,926
Eliminations (176,920) 2,906 (210,053) 3,680 - (437,707) 3,214
Consolidated 1,564,121 12,097 1,638,967 23,201 95 3,639,071 63,140
Total
Fiscal 2004, 1st half: April 1, 2003-September 30, 2003
*Note: Intersegment sales are included in the above chart
3. Overseas Sales
(In millions of yen)
FY'04 1st half FY'03 1st half
Sales % of total net Sales (B) % of total A/B %of total net
(A) sales net sales (%) FY'03 sales
North America 156,523 10.0 151,023 9.2 104 361,774 9.9
Asia (except Japan) 190,247 12.2 190,655 11.6 100 406,316 11.2
Europe 109,447 7.0 96,990 5.9 113 200,049 5.5
Others 26,892 1.7 28,914 1.8 93 84,476 2.3
Total overseas 483,109 30.9 467,582 28.5 103 1,052,615 28.9
sales
Cautionary Statement
The expectation of operating results herein and any associated statement to be
made with respect to Company's current plans, estimates, strategies and beliefs
and any other statements that are not historical facts are forward-looking
statements. Words such as "expects", "anticipates", "plans", "believes",
"scheduled", "estimated", "targeted" along with any variations of these words
and similar expressions are intended to identify forward-looking statements
which include but are not limited to projections of revenues, earnings,
performance and production. While the statements herein are based on certain
assumptions and premises that trusts and considers to be reasonable under the
circumstances to the date of announcement, you are requested to kindly take note
that actual operating results arc subject to change due to any of the factors as
contemplated hereunder and/or any additional factor unforeseeable as of the date
of this announcement.
Such factors materially affecting the expectations expressed herein shall
include but are not limited to the following:
(1) Any change in operating circumstances in any of the markets, in which the
Company conducts its business operation inter alia Japan, the USA and Europe:
such change shall include but not limited to changes in economic situation,
political regime, legal system and legislation, relevant laws and regulations,
administrative policies and practices by any competent authorities, taxation in
any of such markets. (2) Foreign exchange fluctuations, in particular, the rate
of Japanese yen against US Dollar. (3) Relative disproportion between demand and
supply of any products that may affect price and volume, which could be highly
intrusive in such fields like information, telecommunication, electronic devices
and home appliances, without limitation thereto. (4) Shortage of any devices,
components and/or parts necessary for manufacturing operation and difficulties
in material procurement arising out of such shortage, which could even lead to
substantial disconformity with the operating results as expected herein. Also
this factor could he highly intrusive in such fields as information,
telecommunication, electronic devices and home appliances, without limitation
thereto. (5) Any change in technical and technological trends that may be
relevant to businesses of the Company, including but not limited to IT-based or
IT-related fields. (6) Any patent and its licensing that may be granted from
time to time and may affect businesses of the Company. (7) Any development of
products incorporating new technological innovation and the time of their
introduction in the marketplace. (8) Any business alliances of any nature
whatsoever, including hut not limited to joint ventures, business transfers,
mergers, acquisitions, capital contributions, technical licensing or co-
development. (9) Any change in fund raising or procurement, inter alia in the
Japanese financial market.(10) Any fluctuation in stock quotations at any
relevant markets including securities exchanges and over-the counter stock
markets, inter alia in Japan.
About Mitsubishi Electric
With over 80 years of experience in providing reliable, high-quality products to
both corporate clients and general consumers all over the world, Mitsubishi
Electric Corporation (TSE: 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. The company has operations in 35
countries and recorded consolidated group sales of 3,639 billion yen (US$30.3
billion*) in the year ended March 31,2003.
For more information visit http//global.mitsubishielectric.com
*At an exchange rate of 120 yen to the US dollar, the rate given by the Tokyo
Foreign Exchange Market on March 31,2003.
This information is provided by RNS
The company news service from the London Stock Exchange
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