Mitsubishi Electric Announces Consolidated Financial Results for First Half and Second Quarter of Fiscal 2023 | Rare Techy

TOKYO–(Business Phone)–Mitsubishi Electric Corporation (TOKYO:6503) today announced its consolidated financial results for the first half and second quarter, ended September 30, 2022, of the current fiscal year ending March 31, 2023 (fiscal 2023).

The full article on Mitsubishi Electric’s financial results can be viewed at the following link:

www.MitsubishiElectric.com/news

1. Consolidated Half-Yearly Results (April 1, 2022 – September 30, 2022)

The economy in the first half of fiscal year 2023, from April to September 2022, is expected to see a recovery in the corporate and housing sectors in the US. In China, pressure has eased due to the impact of the lockdown due to the growth of COVID-19, and the pace of subsequent recovery will remain slow. In Japan, recovery continued in the housing sector. In Europe, the pace of recovery was slower in the corporate and housing sectors. It was also affected by the increase in some property prices and high inflation, as well as the weakness of the energy sector.

Income

Revenue increased by 201.1 billion yen year-on-year to 2,339.5 billion yen due to the weaker yen, despite a decline in revenue in the Construction division. The Life segment saw growth in building systems businesses in Asia and Japan, and air conditioning and home products businesses also saw growth due to a strong recovery in demand for air conditioners in Asia. (except in China), in Europe and Japan. The Industrial and Space sector witnessed an increase in the factory automation system business due to the increase in global demand for capital expenditures related to digital equipment and automation, and the mechanical equipment industry also increased. due to the strong demand for electric vehicle related equipment. The Business Enterprise sector saw an increase in information systems and network services businesses due to an increase in IT infrastructure service and system integration businesses. The semiconductor and equipment business also increased due to strong demand for electronic components and communication equipment.

Operating budget

Operating profit fell by 57.3 billion yen year-on-year to 80.5 billion yen due mainly to declines in the Life division, Construction division and Industry and Transportation division, despite an increase in the Standard Business division . The operating profit ratio decreased by 3.0 points year-over-year to 3.4% due to a significant cost reduction.

The expense ratio fell 2.3 points year-on-year despite an improvement in the yen’s weakness, which caused some property prices to rise, and the Life division declined due to lower production levels due to inflation. of logical operations. costs and weakness of the energy sector, and the profitability of the Infrastructure sector has also decreased. Selling, general and administrative expenses increased by 62.0 billion yen annually, and the selling, general and administrative expenses to income ratio decreased by 0.7 points annually. Other income (loss) and other income (loss) to income ratios remained unchanged year-over-year.

Profit before income taxes

Profit before income taxes decreased by 45.2 billion yen year-on-year to 103.1 billion yen due to lower operating profit. The profit before tax income to income ratio was 4.4%.

Profit will be provided to shareholders of Mitsubishi Electric Corporation

Net profit attributable to stockholders of Mitsubishi Electric Corporation fell from 30.0 billion yen a year to 74.8 billion yen due to a decrease in profit before income taxes. The net profit provided to shareholders of Mitsubishi Electric Corporation was 3.2%.

2. Second Quarter Results (July 1, 2022 – September 30, 2022)

Income

Revenue increased by 199.9 billion yen year-on-year to 1,271.8 billion yen due to the weaker yen. The Life segment saw an increase in the building systems business due to the rise in Asia and Japan, and an increase in the gas and home products business due to the strong recovery of gas in Japan, North America North and Asia. The Industrial and Aerospace segment witnessed the growth of the factory automation systems business due to the increase in global demand for capital expenditures related to digital equipment and automation, and the growth of the mechanical equipment industry. due to the increase in sales of new cars worldwide- on a year-over-year basis, especially in China and India, and strong demand for electric vehicle-related equipment. The Business segment saw the information systems and network services business unchanged year-over-year, while the semiconductor and equipment business increased due to strong demand for electronic components and communication equipment. The Construction segment saw a decline in the electrical systems business, while the civil utility systems business remained unchanged year-over-year, while the maintenance and space systems business grew.

Operating budget

Operating profit fell by 8.5 billion yen year-on-year to 46.5 billion yen due to declines in the Construction and Life segments, despite increases in the Business Desktop segment and the Industrial and Space segment. The operating profit ratio decreased by 1.4 percentage points year-on-year to 3.7% due to negative cost pressure.

Inflation decreased by 2.0 percentage points year-on-year despite an improvement in the yen’s weakness, which was affected by a rise in some property prices, a decrease in the profit of the Construction sector, and the of Life due to the negative increase in logistics costs. Selling, general and administrative expenses increased by 40.4 billion yen annually, while the selling, general and administrative expenses to revenue ratio increased by 0.5 points annually. Other income (loss) increased by 0.4 billion yen and other income (loss) to income ratio increased by 0.1 point year-over-year.

Profit before income taxes

Profit before income taxes fell from 2.6 billion yen a year to 56.2 billion yen due to lower operating profit. The profit before tax income to income ratio was 4.4%.

Profit will be provided to shareholders of Mitsubishi Electric Corporation

Net profit attributable to shareholders of Mitsubishi Electric Corporation fell from 1.6 billion yen a year to 41.3 billion yen due to a decrease in profit before income taxes. The net profit provided to shareholders of Mitsubishi Electric Corporation was 3.2%.

Forecast for Fiscal 2023

The consolidated revenue forecast for fiscal year 2023, which ends on March 31, 2023, has been revised since the announcement on July 28, 2022, as detailed below. Profits were higher than previously reported because foreign exchange rates were also considered due to a weaker yen and increased component sales on prices. Forecasts for profits were unchanged from the previous announcement due to rising material and input costs, weaknesses in the semiconductor and electronics sectors and low productivity in the Construction sector.

Exchange rates after the third quarter of 2023 are 135 yen to the US dollar, 15 yen weaker than the previous announcement; 135 yen to the euro, 5 yen weaker than the previous reading; and 19.0 yen to the Chinese yuan, 1 yen weaker than the previous reading.

For Mitsubishi Electric Corporation

With more than 100 years of experience in providing reliable, high-quality products, Mitsubishi Electric Corporation (TOKYO: 6503) is a world leader in the manufacture, marketing and sales of electrical appliances and electricity used in information processing and communication, space development. and satellite communications, consumer electronics, industrial technology, energy, transportation and building materials. Mitsubishi Electric enriches society with technology in the spirit of its “Change for Good.” The company recorded revenue of 4,476.7 billion yen (US$ 36.7 billion*) in the fiscal year ended March 31, 2022. For more information, please visit www.MitsubishiElectric.com

*US dollar amounts are translated from yen at the rate of ¥122=US$1, the nearest exchange rate on the Tokyo Stock Exchange as of March 31, 2022