OREANDA-NEWS. July 29, 2011. Mitsubishi Electric Corporation (TOKYO: 6503) announced today its financial results for the first quarter ending June 30, 2011, of the current fiscal year ending March 31, 2012 (fiscal 2012).

Consolidated Financial Results
Net sales: 813.6 billion yen (4% increase from the same quarter last year) Operating income: 52.2 billion yen (1% increase from the same quarter last year)
Income before income taxes: 49.2 billion yen (5% increase from the same quarter last year)

Net income attributable to Mitsubishi Electric Corp.: 27.1 billion yen
(4% increase from the same quarter last year) Management conditions during the first quarter of fiscal 2012 experienced a trend of recovery owing to ongoing buoyancy in demand for capital expenditures mainly in Asia, despite a sharp drop in domestic industrial production due to the Great East Japan Earthquake and Japanese yen appreciating against U.S. dollars.

Under these circumstances, first quarter consolidated net sales rose by 4% ompared to the same period of the previous fiscal year to 813.6 billion yen, owing to increased revenue from the Energy and Electric Systems, Industrial Automation Systems, Electronic Devices and Home Appliances segments, and other factors.
Consolidated operating income increased by 1% compared to the same period of the previous fiscal year to 52.2 billion yen due to higher profits from the Industrial Automation Systems, Electronic Devices and Home Appliances segments, and other factors.

Consolidated Financial Results by Business Segment

Energy and Electric Systems
Total sales: 194.2 billion yen (1% increase from the same quarter last year)
Operating income: 14.5 billion yen (0.9 billion yen decrease from the same quarter last year) The social infrastructure systems business saw an increase in orders compared to the same period of the previous fiscal year owing to growth in the Japanese domestic power generation business, while  experiencing decreased sales from the same period of the previous fiscal year due to a decline in the rolling
stock equipment business in Japan.

The building systems business experienced increases in both orders and sales compared to the same period of the previous fiscal year, owing to increased demand for elevators and escalators in China and the ASEAN markets, as well as sales recorded for large-scale projects in China and the Middle East.

As a result, total sales for this segment increased by 1% from the same period of the previous fiscal year. Operating income decreased compared to the same period of the previous fiscal year by 0.9 billion yen due primarily to a shift in sales components.

Industrial Automation Systems

Total sales: 233.9 billion yen (9% increase from the same quarter last year) Operating income: 27.9 billion yen (0.9 billion yen increase from the same quarter last year) The factory automation systems business saw increases in both orders and sales from the same period of the previous fiscal year owing to growth in demand in the Asian market, including industrial machinery-related investments in China and flat panel display and semiconductor-related investments in Korea and Taiwan.

The automotive equipment business saw decreases in both orders and sales from the same period of the previous fiscal year with Japanese automotive manufacturers experiencing decreases in production volume due to impacts from the Great East Japan Earthquake, despite expansions in emerging markets  including China and India, as well as a recovery in the North American market.

As a result, total sales for this segment increased by 9% from the same period of the previous fiscal year. Operating income increased by 0.9 billion yen compared to the same period of the previous fiscal year mainly due to an increase in sales.

Information and Communication Systems

Total sales: 86.2 billion yen (5% decrease from the same quarter last year) Operating income (loss): (0.3 billion yen) (2.0 billion yen decline from the same quarter last year) The telecommunications equipment business saw decreases in both orders and sales compared to the same period of the previous fiscal year due to decreases in demand for communications infrastructures.

The information systems and service business saw no changes in sales from the same period of the previous fiscal year despite increases mainly in the network and system operations business.

The electronic systems business saw a decrease in orders compared to the same period of the previous fiscal year due to a decrease in large orders for the space systems business, while sales were unchanged from the same period of the previous fiscal year.

As a result, total sales for this segment showed a decrease of 5% compared to the same period of the previous fiscal year. Operating income declined by 2.0 billion yen compared to the same period of the previous fiscal year due primarily to decreased sales.

Electronic Devices

Total sales: 50.0 billion yen (20% increase from the same quarter last year) Operating income: 2.4 billion yen (1.7 billion yen increase from the same quarter last year) The semiconductor business saw increases in both orders and sales from the same period of the previous fiscal year owing to increased demand for power modules used in industrial, consumer and railway applications.

The LCD module business saw increases in both orders and sales from the same period of the previous fiscal year due to increased demand for industrial and automotive-use products.

As a result, total sales for the segment increased by 20% compared to the same period of the previous fiscal year. Operating income increased by 1.7 billion yen compared to the same period of the previous fiscal year due primarily to an increase in sales.

Home Appliances

Total sales: 232.3 billion yen (8% increase from the same quarter last year) Operating income: 14.7 billion yen (0.5 billion yen increase from the same quarter last year) The home appliances business saw an increase in sales by 8% compared to the same period of the previous fiscal year due primarily to increases in air conditioners for markets inside and outside Japan, LCD televisions and Blu-ray recorders in Japan, which experienced a last-minute surge before the termination of
analog broadcasting, as well as photovoltaic systems for the Japanese market owing mainly to ongoing benefits from government subsidies.

Operating income increased by 0.5 billion yen from the same period of the previous fiscal year primarily due to increased sales.

Others

Total sales: 138.5 billion yen (3% increase from the same quarter last year) Operating income: 1.1 billion yen (0.6 billion yen increase from the same quarter last year) Sales increased by 3% compared to the same period of the previous fiscal year mainly in affiliated companies involved in engineering, material procurement and logistics. Operating income showed an increase by 0.6 billion yen compared to the same period of the previous fiscal year primarily due to increased sales.

Financial Standing
The company’s total assets for the fiscal quarter decreased from the end of the previous fiscal year by 88.5 billion yen to 3,244.1 billion yen. This was mainly due to credit collection resulting in a decrease of trade receivables by 119.2 billion yen and also to cash and cash equivalents decreasing by 47.4 billion yen, while inventories increased by 86.0 billion yen mainly due to variation of the balance of work-in-process as recorded in commensurate with progress in job orders under pertinent contracts.

The balance of outstanding debt and corporate bonds fell by 7.2 billion yen from the balance as of the end of the previous fiscal year to 477.1 billion yen, while the ratio of interest bearing debt to total assets was 14.7%, a 0.2-point increase compared to the end of the previous fiscal year. Trade payables decreased by 62.2 billion yen, and retirement and severance benefits increased by 6.8 billion yen.
Mitsubishi Electric Corporation shareholders’ equity increased by 1.3 billion yen compared to the end of the previous fiscal year to 1,051.7 billion yen.

Shareholders’ equity ratio showed a 0.9-point increase compared to the end of the previous fiscal year to 32.4%. Retained earnings increased by 12.1 billion yen due to a total consolidated net income attributable to Mitsubishi Electric Corporation of 27.1 billion yen and dividend payment of 15.0 billion yen, while accumulated other comprehensive income decreased by 8.3 billion yen amidst strong yen and other factors.

Operating cash flow for this quarter decreased by 67.4 billion yen compared to the same period of the previous fiscal year to 19.2 billion yen (cash in). Investment cash flow decreased by 23.3 billion yen compared to the same period of the previous fiscal year to 31.8 billion yen (cash out), resulting from a decrease mainly in investment on securities. As a result, free cash flow totaled 12.5 billion yen (cash out).

Financial cash flow was 33.8 billion yen (cash out) due to payment of dividends, repayment of loans and other factors.
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