OREANDA-NEWS. Mitsubishi Electric Corporation (TOKYO: 6503) announced today its financial results for the first half and second quarter, ended September 30, 2015, of the current fiscal year ending March 31, 2016 (fiscal 2016).

Consolidated Half-year Results (April 1, 2015 – September 30, 2015)
Net sales: 2,063.2 billion yen (5% increase from the same period last year)
Operating income: 127.0 billion yen (5% increase from the same period last year)
Income before income taxes: 133.0 billion yen (9% decrease from the same period last year)
Net income attributable to
Mitsubishi Electric Corp.: 92.9 billion yen (5% decrease from the same period last year)

The business environment in the first half of fiscal year 2016, from April through September 2015, experienced a stronger trend of economic slowdown in China and other East Asian markets, weakness in consumption in Japan and stronger stagnation in certain emerging markets. Meanwhile, the U.S. economy
saw continued buoyancy and the European market showed gradual recovery. In the foreign currency exchange market, the yen was weaker against the U.S. dollar compared to the previous year.

Under these circumstances, consolidated net sales in the first half of fiscal 2016 increased by 5% compared to the same period of the previous fiscal year to 2,063.2 billion yen, due to increased sales in the Energy and Electric Systems, Industrial Automation Systems, Electronic Devices and Home Appliances segments.
Consolidated operating income also increased by 5% compared to the same period of the previous fiscal year to 127.0 billion yen, due to increased profits in the Industrial Automation Systems and Electronic Devices segments. 

Consolidated Financial Results by Business Segment (First Half, Fiscal 2016)
Energy and Electric Systems
Total sales: 523.7 billion yen (4% increase from the same period last year)
Operating income: 3.7 billion yen (8.7 billion yen decrease from the same period last year)

The social infrastructure systems business saw increases both in orders and sales compared to the same period of the previous fiscal year due to increases in the power systems business and the rolling-stock equipment business in Japan, and also due to the weaker yen.

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 outside Japan and the renewal business in Japan, as well as the weaker yen.

As a result, total sales for this segment increased by 4% from the same period of the previous fiscal year. Operating income decreased by 8.7 billion yen from the same period of the previous fiscal year due primarily to a shift in project portfolios and lower profit in the power systems business. 

Industrial Automation Systems
Total sales: 661.5 billion yen (9% increase from the same period last year)
Operating income: 83.9 billion yen (17.6 billion yen increase from the same period last year)

The factory automation systems business saw a decrease in orders from the same period of the previous fiscal year mainly due to lower demand outside Japan, while sales experienced an increase from the same period of the previous fiscal year due to growth in capital expenditures relating to the automotive industry
and 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 Europe, as well as the positive influence of the weaker yen.

As a result, total sales for this segment increased by 9% from the same period of the previous fiscal year. Operating income increased by 17.6 billion yen from the same period of the previous fiscal year due primarily to an increase in sales.