OREANDA-NEWS. Mitsubishi Electric Corporation (TOKYO: 6503) announced today its consolidated and non-consolidated financial results for fiscal 2015 (April 1, 2014- March 31, 2015).

Consolidated Financial Results
  • Net sales: 4,323.0 billion yen (7% increase from the previous fiscal year)
  • Operating income: 317.6 billion yen (35% increase from the previous fiscal year)
  • Income before income taxes: 322.9 billion yen (30% increase from the previous fiscal year)
  • Net income attributable to Mitsubishi Electric Corp.: 234.6 billion yen (53% increase from the previous fiscal year)
Non-consolidated Financial Results
  • Net sales: 2,675.6 billion yen (8% increase from the previous fiscal year)
  • Operating income: 150.6 billion yen (52% increase from the previous fiscal year)
  • Ordinary profit: 171.4 billion yen (34% increase from the previous fiscal year)
  • Net income: 135.2 billion yen (35% increase from the previous fiscal year)
The business environment during the fiscal year ended March 31, 2015 in general experienced a gradual upward trend, with buoyant economic expansion in the U.S. and economic recovery in Europe having a positive effect, despite Japan’s economy remaining in a state of weak recovery centered around consumption and despite the economic slowdown in China and some emerging markets. In addition, the weakening of the yen advanced against the U.S. dollar, while the yen became stronger against the euro.

Under these circumstances, the Mitsubishi Electric Group has been working even harder than before to promote growth strategies rooted in its advantages, while continuously implementing initiatives to strengthen its competitiveness and business structure.

As a result, Mitsubishi Electric has recorded consolidated net sales of 4,323.0 billion yen for fiscal 2015, an increase of 7% compared to the previous fiscal year with increased sales in all segments. Consolidated operating income increased by 35% compared to the previous fiscal year to 317.6 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

Energy and Electric Systems
  • Total sales: 1,228.9 billion yen (4% increase from the previous fiscal year)
  • Operating income: 72.4 billion yen (3.8 billion yen decrease from the previous fiscal year)
The social infrastructure systems business saw a decrease in orders compared to the previous fiscal year due primarily to a decrease in the power generation and public utility systems businesses in Japan. Sales, meanwhile, remained unchanged compared to the previous fiscal year owing to increases in the rolling-stock equipment business outside Japan.

The building systems business experienced increases both in orders and sales compared to 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 4% from the previous fiscal year. Operating income decreased by 3.8 billion yen from the previous fiscal year due primarily to a shift in project portfolio.

Industrial Automation Systems
  • Total sales: 1,282.7 billion yen (17% increase from the previous fiscal year)
  • Operating income: 145.9 billion yen (47.9 billion yen increase from the previous fiscal year)
The factory automation systems business saw increases in both orders and sales from 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 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 17% from the previous fiscal year. Operating income increased by 47.9 billion yen from the previous fiscal year due primarily to an increase in sales.

Information and Communication Systems
  • Total sales: 559.5 billion yen (2% increase from the previous fiscal year)
  •  Operating income: 18.9 billion yen (13.4 billion yen increase from the previous fiscal year)
The telecommunications equipment business saw decreases in both orders and sales from the previous fiscal year due primarily to a decrease in demand for communications infrastructure products.

Sales in the information systems and service business saw decreases compared to sales of the previous fiscal year.

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

As a result, total sales for this segment increased by 2% compared to the previous fiscal year. Operating income increased by 13.4 billion yen from the previous fiscal year due primarily to an increase in sales.

Electronic Devices
  • Total sales: 238.4 billion yen (22% increase from the previous fiscal year)
  • Operating income: 30.1 billion yen (20.1 billion yen increase from the previous fiscal year)
The electronic devices business saw increases in both orders and sales from the previous fiscal year due to an increase in demand mainly for power modules used in automotive applications owing to expansion in hybrid and electric vehicle markets, as well as an increase in demand for power modules used in railcar, consumer and industrial applications and for optical communication devices mainly in the Chinese market, and due additionally to the weaker yen.

As a result, total sales for this segment increased by 22% compared to the previous fiscal year. Operating income increased by 20.1 billion yen compared to the previous fiscal year due primarily to an increase in sales.

Home Appliances
  • Total sales: 944.8 billion yen (Unchanged from the previous fiscal year)
  • Operating income: 54.2 billion yen (1.4 billion yen increase from the previous fiscal year)
The home appliances business remained substantially unchanged compared to the previous fiscal year despite 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, due to impact from the last-minute surge in demand experienced in Japan before the rise in consumption tax the previous year.

Operating income increased by 1.4 billion yen compared to the previous fiscal year largely due to the weaker yen.

Others
  • Total sales: 740.5 billion yen (10% increase from the previous fiscal year)
  • Operating income: 23.7 billion yen (3.9 billion yen increase from the previous fiscal year)
Sales increased by 10% compared to the previous fiscal year mainly at affiliated companies involved in materials procurement.

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

Fundamental dividend distribution policy

Mitsubishi Electric’s fundamental policy is to comprehensively promote improvement in shareholder profit from the viewpoints of appropriate profit distribution commensurate with earnings performance of the respective fiscal year, as well as strengthening our financial standing through the company’s internal reserves, with the ultimate goal of enhancing corporate value.

FY 2015 and FY 2016 dividend

Considering the Company’s business performance and financial conditions in fiscal 2015, the Company has decided to pay a year-end retained earnings dividend of 18 yen per share for fiscal 2015. Adding the interim dividend of 9 yen per share, the total annual dividend will be 27 yen per share. Payment is planned to begin on June 2, 2015.

The retained earnings dividend for fiscal 2016 is still undecided. cf. In fiscal 2014, interim dividend was 6 yen and year-end dividend was 11yen per share. (Annual dividend of 17 yen per share).