OREANDA-NEWS. Mitsubishi Electric Corporation (TOKYO: 6503) announced today its financial results for the first 9 months and third quarter ending December 31, 2014, of the current fiscal year ending March 31, 2015 (fiscal 2015).

1. Consolidated First 9 Months Results (April 1, 2014 – December 31, 2014)
Net sales: 2,983.2 billion yen (9% increase from the same period last year)
Operating income: 201.3 billion yen (41% increase from the same period last year)
Income before income taxes: 220.6 billion yen (42% increase from the same period last year)
Net income attributable to Mitsubishi Electric Corp.: 145.6 billion yen (53% increase from the same period last year)

In the first 9 months of fiscal 2015, the business environment in general experienced an upward trend, with the buoyant U.S. economy having a positive effect despite the economic weakness in Japan, Europe and some emerging markets. In addition, the weakening of the yen advanced towards the end of the third quarter.

Under these circumstances, consolidated net sales for the first 9 months of fiscal 2015 increased by 9% compared to the same period of the previous fiscal year to 2,983.2 billion yen with increased sales in all segments. Consolidated operating income increased by 41% compared to the same period of the previous fiscal year to 201.3 billion yen, due to increased profits in the Industrial Automation Systems, Information and Communication Systems, Electronic Devices and Home Appliances segments.

Consolidated Financial Results by Business Segment (First 9 months, Fiscal 2015)
Energy and Electric Systems
Total sales: 779.7 billion yen (6% increase from the same period last year)
Operating income: 32.5 billion yen (10.7 billion yen decrease from the same period last year)

The social infrastructure systems business saw a decrease in orders compared to the same period of the previous fiscal year due primarily to a decrease in the power generation business in Japan. Sales, meanwhile, saw an increase compared to the same period of the previous fiscal year owing to increases in the rolling-stock equipment business outside Japan and the public utility systems business in Japan.

The building systems business experienced increases both in orders and sales compared to the same period of the previous fiscal year, owing to growth in the new installation of elevators and escalators overseas, mainly in China and ASEAN countries, as well as the weaker yen.

As a result, total sales for this segment increased by 6% from the same period of the previous fiscal year. Operating income decreased by 10.7 billion yen from the same period of the previous fiscal year due primarily to a shift in project portfolio.

Industrial Automation Systems
Total sales: 932.5 billion yen (20% increase from the same period last year)
Operating income: 108.2 billion yen (36.8 billion yen increase from the same period last year)

The factory automation systems business saw increases in both orders and sales from the same period of the previous fiscal year due to growth in capital expenditures relating to smartphone and automotive industries as well as facility replacements by manufacturers in Japan, and due additionally to the weaker yen.

The automotive equipment business saw increases in both orders and sales from the same period of the previous fiscal year due primarily to growth in the car sales market in North America and China, as well as the positive influence of the weaker yen.

As a result, total sales for this segment increased by 20% from the same period of the previous fiscal year. Operating income increased by 36.8 billion yen from the same period of the previous fiscal year due primarily to an increase in sales.

Information and Communication Systems
Total sales: 375.4 billion yen (6% increase from the same period last year)
Operating income: 12.9 billion yen (9.6 billion yen increase from the same period last year)

The telecommunications equipment business saw decreases in both orders and sales from the same period of the previous fiscal year due primarily to a decrease in demand for communications infrastructure products.

Sales in the information systems and service business remained substantially unchanged compared to sales of the same period of the previous fiscal year.

The electronic systems business saw a decrease in orders compared to the same period of the previous fiscal year due to a decrease in orders for large-scale projects in the electronics business. Sales, meanwhile, experienced an increase compared to the same period of the previous fiscal year due to progress in orders already received for projects in the electronics and space systems businesses.

As a result, total sales for this segment increased by 6% compared to the same period of the previous fiscal year. Operating income increased by 9.6 billion yen from the same period of the previous fiscal year due primarily to an increase in sales.

Electronic Devices
Total sales: 161.6 billion yen (20% increase from the same period last year)
Operating income: 15.9 billion yen (8.2 billion yen increase from the same period last year)

The semiconductor business saw increases in both orders and sales from the same period of the previous fiscal year due to an increase in demand mainly for power modules used in automotive, railcar, consumer and industrial applications and for optical communication devices, and due additionally to the weaker yen.

Orders in the LCD module business remained substantially unchanged compared to the same period of the previous fiscal year, while sales decreased compared to the same period of the previous fiscal year.

As a result, total sales for this segment increased by 20% compared to the same period of the previous fiscal year. Operating income increased by 8.2 billion yen compared to the same period of the previous fiscal year due primarily to an increase in sales. 3/18

Home Appliances
Total sales: 689.6 billion yen (3% increase from the same period last year)
Operating income: 41.1 billion yen (10.7 billion yen increase from the same period last year)

The home appliances business saw an increase in sales of 3% compared to the same period of the previous fiscal year due primarily to increased sales in air conditioners in Asian, North American and European markets and in package air conditioners in Japan, as well as the weaker yen, despite impact from the backlash due to the last-minute surge in demand experienced in Japan before the rise in consumption tax.
Operating income increased by 10.7 billion yen compared to the same period of the previous fiscal year largely due to an increase in sales.

Others
Total sales: 534.9 billion yen (13% increase from the same period last year)
Operating income: 13.9 billion yen (3.9 billion yen increase from the same period last year)

Sales increased by 13% compared to the same period of the previous fiscal year mainly at affiliated companies involved in materials procurement.

Operating income increased by 3.9 billion yen compared to the same period of the previous fiscal year due primarily to an increase in sales.

2. Consolidated Third-quarter Results (October 1, 2014 – December 31, 2014)

Net sales: 1,010.4 billion yen (10% increase from the same period last year)
Operating income: 79.9 billion yen (26% increase from the same period last year)
Income before income taxes: 74.7 billion yen (3% increase from the same period last year)
Net income attributable to Mitsubishi Electric Corp.: 47.7 billion yen (3% increase from the same period last year)

Consolidated net sales for this quarter increased by 10% compared to the same period of the previous fiscal year to 1,010.4 billion yen due to increased sales in all segments. Consolidated operating income was 79.9 billion yen, increasing by 26% from the same period of the previous fiscal year with increased profits in the Industrial Automation Systems, Information and Communication Systems and Electronic Devices segments.

Consolidated Financial Results by Business Segment (Third Quarter, Fiscal 2015)
Energy and Electric Systems
Total sales: 277.5 billion yen (7% increase from the same period last year)
Operating income: 20.0 billion yen (4.8 billion yen decrease from the same period last year)

The social infrastructure systems business saw a decrease in orders compared to the same period of the previous fiscal year due primarily to a decrease in orders for the public utility systems business in Japan, while sales increased compared to the same period of the previous fiscal year owing to increases in the power generation and the rolling-stock equipment businesses outside Japan. The building systems business experienced increases both in orders and sales compared to the same period of the previous fiscal year, owing to growth in the new installation of elevators and escalators overseas, mainly in China and ASEAN countries, as well as the weaker yen. As a result, total sales for this segment increased by 7% from the same period of the previous fiscal year. Operating income decreased by 4.8 billion yen from the same period of the previous fiscal year due primarily to a shift in project portfolio.