TOKYO–(BUSINESS THREAD)–Mitsubishi Electric Corporation (TOKYO: 6503) today announced its consolidated financial results for the first quarter ended June 30, 2022, for the current fiscal year ended March 31, 2023 (fiscal 2023).
The full document on Mitsubishi Electric’s financial results can be found at the following link:
www.MitsubishiElectric.com/news
The economy in the first quarter, April-June 2022, of fiscal year 2023 continued to recover, generally in the business and household sectors in the US, while there was downward pressure in the business sectors and family due to the impact of the confinement caused by the spread of COVID-19 in China. In Japan and Europe, the pace of recovery slowed mainly due to a decline in production. There has also been the impact of the increase in part of the prices of materials and the high logistics costs, as well as the prolonged shortage of components.
income
Revenue increased by 1.2 billion yen year-on-year to 1.067.7 billion yen mainly due to the weakness of the yen, despite the decrease mainly due to the impact of the Shanghai blockade. The Infrastructure segment experienced a decline in revenue across all of its businesses: utility systems, energy systems, and defense and space systems. The Life segment experienced an increase in the building systems business and a decrease in the air conditioning systems and home products business. The Industry and Mobility segment experienced an increase in the automotive equipment business and a decrease in the factory automation systems business. The Business Platform segment experienced increases in both information systems and network service businesses and semiconductor and device businesses.
Operating profit
Operating profit decreased by 48.8 billion yen year-on-year to 33.9 billion yen, mainly due to decreases in the Life segment, the Industry & Mobility segment and the Infrastructure segment, despite an increase in the Business Platform segment. The operating profit ratio decreased 4.6 points year-on-year to 3.2% due mainly to the deterioration of the cost ratio.
The cost ratio deteriorated by 2.5 points year-on-year despite the weakness of the yen, mainly due to the impact of rising material prices and the deterioration of the Life segment, whose production level was lower due to ‘shortage of electronic components. Selling, general and administrative expenses increased by 21.5 billion yen year-over-year, and the ratio of general and administrative expenses to revenue deteriorated by 2.0 points year-over-year. Other earnings (losses) decreased by 0.3 billion yen year-on-year and other profit (loss) to income ratio deteriorated by 0.1 points year-on-year.
Profit before income tax
Profit before income taxes decreased by 42.6 billion yen year-on-year to 46.8 billion yen due mainly to a decrease in operating profit. The profit before tax ratio on income was 4.4%.
Net profit attributable to shareholders of Mitsubishi Electric Corporation
Net income attributable to shareholders of Mitsubishi Electric Corporation decreased by 28.3 billion yen year-on-year to 33.4 billion yen, mainly due to a decrease in profit before income taxes. Mitsubishi Electric Corporation’s net profit attributable to shareholders to income ratio was 3.1%.
Forecast for the year 2023
The consolidated earnings forecast for fiscal year 2023, ending March 31, 2023, is unchanged from the previous forecast announced on April 28, 2022, as noted below.
Based on a certain premise, Mitsubishi Electric has taken into account the impact of inadequate testing, including the costs of additional inspections and the strengthening of the quality control system. Depending on the progress of future customer discussions and investigations, the Group may incur losses in excess of this premise or related to the discovery of any other inadequate quality control practices. If any potential impact comes to light, it will be disclosed immediately. For more information on inadequate evidence, see “Relevant documents” in Restoring Trust: Our Roadmap to Reform.
Exchange rates during and after the second quarter of fiscal year 2023 are 120 yen to the US dollar, which is 5 yen weaker than the previous announcement; 130 yen per euro, which is 5 yen weaker than the company’s previous announcement; and 18.0 yen to the Chinese yuan, unchanged from the previous announcement.
About Mitsubishi Electric Corporation
With more than 100 years of experience in providing reliable and high-quality products, Mitsubishi Electric Corporation (TOKIO: 6503) is a recognized world leader in the manufacture, marketing and sale of electrical and electronic equipment used in the processing of information and communications, spatial development. and satellite communications, consumer electronics, industrial technology, energy, transportation and construction equipment. Mitsubishi Electric enriches society with technology in the spirit of its “Changes for the better”. The company reported revenue of ¥4,476.7 billion (US$36.7 billion*) in the fiscal year ending March 31, 2022. For more information, visit www.MitsubishiElectric.com
*Amounts in US dollars are translated from yen at the rate of ¥122=US$1, the approximate rate of the Tokyo foreign exchange market on March 31, 2022
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