Mitsubishi Electric Announces Consolidated and Non-Consolidated Half-Year Results for the Period of April 1, 2004 - September 30, 2004.TOKYO -- Mitsubishi Electric Mitsubishi Electric Corporation (三菱電機株式会社 Corporation today announced its consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: and non-consolidated financial results for the half-year ended September September: see month. 30, 2004 as follows:
Consolidated:
Net sales 1.6079 trillion yen (3% increase from the previous
semiannual period)
Operating income 43.2 billion yen (258% increase from the
previous semiannual period)
Income before 32.0 billion yen (90% increase from the
income taxes previous semiannual period)
Net income 19.0 billion yen (399% increase from the
previous semiannual period)
Non-consolidated:
Net sales 928.2 billion yen (2% increase from the previous
semiannual period)
Ordinary profit 22.2 billion yen (4% increase from the previous
semiannual period)
Net income 7.0 billion yen (59% decrease from the previous
semiannual period)
The business environment during the fiscal 2005 interim period saw the impact of rising crude oil prices and other factors but as a whole was sound with continued solid performance of production and capital investment in Japan, increased demand brought on by the heat wave and the Olympics Olympics Sports medicine An international competition among (traditionally) nonprofessional athletes trained in a particular summer or winter sport, which is held every 4 yrs in a selected city. See Paralympics, Special Olympics, World Medical Games. and other factors within the continuing solid global economic recovery centering on the U.S. and East Asia East Asia A region of Asia coextensive with the Far East. East Asian adj. & n. . Under these circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or , net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight during this interim period totaled 1,607.9 billion yen, a year-on-year increase of 3% on a consolidated basis due to increased income in our Industrial Automation Systems segment and Home Appliances segment, which sustained expansion conditions based on solid demand. Operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. totaled 43.2 billion yen, a year-on-year increase of 258% due to increased income in our Industrial Automation Systems segment and Home Appliances segment as well as a surplus in Electronic Devices segment. Consolidated Results by Business Segment In the Energy and Electric Systems segment, compared to the corresponding period in the previous year, sales decreased by 3% to 316.0 billion yen and operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. was 4.8 billion yen, 0.8 billion yen improvement compared to the corresponding period of the previous fiscal year. The social infrastructure system business fell short of their year-ago levels both for orders and net sales, despite the increases of export to China and other Asian countries Noun 1. Asian country - any one of the nations occupying the Asian continent Asian nation country, land, state - the territory occupied by a nation; "he returned to the land of his birth"; "he visited several European countries" where intense investment continues in order to improve their social infrastructures. This resulted mainly from the spinning off of electrical infrastructure business for the plants in manufacture industry as well as the restraint RESTRAINT. Something which prevents us from doing what we would desire to do. 2. Restraint is lawful and unlawful. It is lawful when its object is to prevent the violation of the law, or the rights of others. on capital investment, both private and public, by Japanese Japanese (jăp'ənēz`), language of uncertain origin that is spoken by more than 125 million people, most of whom live in Japan. There are also many speakers of Japanese in the Ryukyu Islands, Korea, Taiwan, parts of the United States, and power companies and railroad railroad or railway, form of transportation most commonly consisting of steel rails, called tracks, on which freight cars, passenger cars, and other rolling stock are drawn by one locomotive or more. businesses. The building system business showed an increase both for orders and net sales, compared to the corresponding period in the previous year, due to the increased demand in China and other East Asian countries as well as large demand in Japan. As a result, total sales for this segment showed 3% decrease while operating income showed an improvement of 0.8 billion yen due to such factors as cost reduction. The Industrial Automation Systems segment, compared to the corresponding period in the previous year, experienced a 17% increase in sales to 395.7 billion yen while operating income increased by 17.2 billion yen to 43.3 billion yen. The FA system business saw an increase from the corresponding period of the previous fiscal year in both orders and net sales through increases in programmable controllers Programmable controllers Electronic computers that are used for the control of machines and manufacturing processes through the implementation of specific functions such as logic, sequencing, timing, counting, and arithmetic. , servo An electromechanical device that uses feedback to provide precise starts and stops for such functions as the motors on a tape drive or the moving of an access arm on a disk. motors systems and numerical numerical expressed in numbers, i.e. Arabic numerals of 0 to 9 inclusive. numerical nomenclature a numerical code is used to indicate the words, or other alphabetical signals, intended. controllers for semiconductor and liquid crystal panel manufacturing equipment in the Japanese, Chinese Chinese, subfamily of the Sino-Tibetan family of languages (see Sino-Tibetan languages), which is also sometimes grouped with the Tai, or Thai, languages in a Sinitic subfamily of the Sino-Tibetan language stock. and other Asian markets. The automotive equipment business posted an increase from the corresponding period of the previous fiscal year both in orders and net sales due to increased demand for car navigation See GPS. systems, ETC ETC - ExTendible Compiler. Fortran-like, macro extendible. "ETC - An Extendible Macro-Based Compiler", B.N. Dickman, Proc SJCC 38 (1971). onboard Refers to a chip or other hardware component that is directly attached to the printed circuit board (motherboard). Contrast with offboard. See inboard. units, as well as alternators and starters for both domestic and overseas automobile automobile, self-propelled vehicle used for travel on land. The term is commonly applied to a four-wheeled vehicle designed to carry two to six passengers and a limited amount of cargo, as contrasted with a truck, which is designed primarily for the transportation of manufacturers. As a result, total sales for this segment increased by 17% over the previous year while operating income showed an increase of 17.2 billion yen due to increased sales, etc. The Information and Communication Systems segment posted a decrease in net sales of 19% to 269.3 billion yen and an operating loss of 9.7 billion yen, which was an increase of 6.3 billion yen from the corresponding period of the previous fiscal year. In the telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. equipment business, both orders and net sales dropped due to the decrease of wireless base stations for China and domestic mobile handsets. The information systems and services business posted a level of net sales similar to the corresponding period of previous fiscal year due to the increase of small to medium demand, despite the decrease of large demand in system integration business. In the electronic system business, there was a decrease in both orders and net sales compared to the corresponding period of previous fiscal year due to a period between large governmental projects. As a result, total sales for this segment showed a decrease of 19% from the corresponding period of the previous fiscal year while operating loss increased by 6.3 billion yen due to decreased sales, etc. The Electronic Devices segment recorded net sales of 81.5 billion yen, a 7% decrease from the corresponding period of the previous fiscal year, while operating income improved by 8.2 billion yen to a profit of 3.6 billion yen. The semiconductor business posted increase in both orders and net sales for power semiconductors, high-frequency and optical devices compared to the same period of the previous fiscal year due to the increase in power module for white goods including air conditioners Conditioners used on leather take many shapes and forms. They are used mostly to keep leather from drying out and deteriorating. A very old and widely used conditioner is dubbin. and laundry Laundry can be:
Before industrialization machines and industrial machinery bound mainly for China as well as due to the increase in laser diodes A semiconductor-based laser used to generate analog signals or digital pulses for transmission through optical fibers. Both laser diodes and LEDs (light-emitting diodes) are used for this purpose, but the laser diode generates a smaller beam that is easier to couple with the smaller core for recordable DVD See DVD-R, DVD-RW, DVD+RW and DVD-RAM. players. However, the impact from spinning off the system LSI LSI: see integrated circuit. (Large Scale Integration) Between 3,000 and 100,000 transistors on a chip. See SSI, MSI, VLSI and ULSI. led to decreases in net sales of the semiconductor business from the corresponding period of the previous fiscal year, since the sales figure in the last semiannual Semiannual An event that occurs twice in a calendar year. Notes: A bond with semiannual coupons would issue payment once every six months. See also: Annual, Bond, Coupon Bond period, in comparison to the present, included net sales arising out of the first-quarter revenue from the Asian region, left behind the originally intended schedule of the business transfer and remained with Mitsubishi Electric Corporation during such a transitory TRANSITORY. That which lasts but a short time, as transitory facts that which may be laid in different places, as a transitory action. period. The liquid crystal business showed an increase in both orders and net sales from the corresponding period of the previous fiscal year due to an increase of small to medium sized products for mobile handsets and displays for manufacturing equipments in an industrial sector. As a result, total sales for this segment decreased by 7% from the corresponding period of the previous fiscal year while operating income increased by 8.2 billion yen to 3.6 billion yen due to cost reduction, etc. In the Home Appliances segment, compared to the corresponding period in the previous year, net sales increased 13% to 455.4 billion yen while operating income was 18.5 billion yen, an 8.9 billion yen increase. In the home appliance A stand-alone hardware device or software environment dedicated to a specific task. See hardware appliance and software appliance. business, net sales in home air conditioners, solar power generation systems and DVD-related equipments for both domestic and overseas market, packaged air conditioners for overseas market and refrigerators for domestic market showed an increase compared to the corresponding period of the previous fiscal year. As a result, total sales for this segment increased by 13% from the corresponding period of the previous fiscal year while operating income increased by 8.9 billion yen to 18.5 billion yen due to increased sales, etc. In the Others segment, compared to the corresponding period in the previous year, net sales increased by 15% to 277.3 billion yen while operating income increased 2.2 billion yen to 4.4 billion yen. Net sales mainly in affiliated companies Affiliated Companies A situation that occurs when one company owns a minority interest (less than 50%) in another company. Also refers to companies that are related to each other in some way. Notes: An affiliated company is sometimes referred to as a subsidiary. for material procurement The fancy word for "purchasing." The procurement department within an organization manages all the major purchases. , logistics logistics In military science, all the activities of armed-force units in support of combat units, including transport, supply, communications, and medical aid. The term, first used by Henri Jomini, Alfred Thayer Mahan, and others, was adopted by the U.S. and system maintenance showed an increase compared to the corresponding period of the previous fiscal year. As a result, total sales for this segment increased by 15% from the corresponding period of the previous fiscal year while operating income increased by 2.2 billion yen to 4.4 billion yen. Dividend The company plans to implement the fiscal 2005 interim dividend payment of 2 yen per share. (As a reference, the fiscal 2004 interim dividend was nil; the year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. was 4 yen). Financial Position (consolidated basis) Assets, liabilities and shareholders' equity Shareholders' Equity A firms' total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Shareholders' equity is the amount by which a company is financed through common and preferred shares. : The company's total assets declined from the end of the previous fiscal year by 27.8 billion yen to 3,197.3 billion yen. While the inventories for prospective sales for the upcoming half-year period increased by 67.4 billion yen, mainly in the Energy and Electric System segment, accounts receivables accounts receivable n. the amounts of money due or owed to a business or professional by customers or clients. Generally, accounts receivable refers to the total amount due and is considered in calculating the value of a business or the business' problems in paying decreased by 91.5 billion yen due to extensive effort to accelerate collection of our credits. As for liabilities, the balance of outstanding interest bearing debt fell by 59.0 billion yen from the end of the previous fiscal year to 845.4 billion yen, resulting in a reduction of its ratio against total assets down to 26.4% (a reduction by 1.6 point compared to the end of the previous fiscal year). Trade payables Payables Related: Accounts payable declined by 53.4 billion yen. Meanwhile, other current liabilities Other Current Liabilities A balance sheet entry used by companies to group together current liabilities that are not assigned to common liabilities such as debt obligations or accounts payable. increased by 61.7 billion yen due to accrued ac·crue v. ac·crued, ac·cru·ing, ac·crues v.intr. 1. To come to one as a gain, addition, or increment: interest accruing in my savings account. 2. income tax and advance receipt. In addition, retirement and severance The act of dividing, or the state of being divided. The term severance has unique meanings in different branches of the law. Courts use the term in both civil and criminal litigation in two ways: first, when dividing a lawsuit into two or more parts, and second, when benefits reserve increased by 19.5 billion yen due to an increased shortage in pension reserve triggered by a decline in stock prices. As for shareholders' equity, consolidated retained earnings Retained Earnings The percentage of net earnings not paid out in dividends, but retained by the company to be reinvested in its core business or to pay debt. It is recorded under shareholders equity on the balance sheet. increased 10.4 billion yen due to the appropriation The designation by the government or an individual of the use to which a fund of money is to be applied. The selection and setting apart of privately owned land by the government for public use, such as a military reservation or public building. of net income of 19.0 billion yen and the dividend payment of 8.5 billion yen. Meanwhile, an increase of minimum pension liability adjustments, along with a reduction of net unrealized gains Unrealized Gain A profit that results from holding on to an asset rather than cashing it in and using the funds. Notes: Let's say you own a stock that has doubled, but you haven't sold it yet. This is said to be an unrealized gain. on securities and other factors, have resulted in total increase of shareholders' equity balance to 604.5 billion yen, 3.0 billion yen more than the end of the previous fiscal year, increasing the company's shareholders' equity ratio by 0.2 points to 18.9%. Cash flow The company's cash flows from operating activities were 119.6 billion yen (positive) due to such activities to improve our financial standing as inventory reduction. Meanwhile, cash flows from investment activities were 43.8 billion yen (used), mainly due to the increase of capital expenditure in production facilities for certain outperforming businesses. As a result, the free cash flow achieved an income of 75.7 billion yen. On the other hand, cash flows from financial activities represented net cash used of 74.7 billion yen, mainly due to the progress in loan repayment Repayment The act of paying back a debt. Notes: Everyone has to repay their debts eventually. See also: Debt, Defeasance, Loan and bond redemptions with objective of improving financial standing. Annual Forecast for Fiscal 2005 (The year ending March 31st, 2005) The solid economic recovery is expected to continue for the time being in both Japan and overseas, but there are fears about a deceleration deceleration /de·cel·er·a·tion/ (de-sel?er-a´shun) decrease in rate or speed. early deceleration of the U.S. economy in the future and negative impact on Japan due to a drop in external demand. This combined with fears over pricing trends for crude oil and materials mans that the management environment's future is not transparent (1) Refers to a change in hardware or software that, after installation, causes no noticeable change in operation. Also known as "feature transparency." Contrast with "seamless integration," which means that an additional component to the system can be added without incurring any . Under these circumstances, the Mitsubishi Electric Group is improving and reinforcing re·in·force also re-en·force or re·en·force tr.v. re·in·forced, re·in·forc·ing, re·in·forc·es 1. To give more force or effectiveness to; strengthen: The news reinforced her hopes. earnings from each business, expanding and enhancing our "Inventory Asset Contraction contraction, in physics contraction, in physics: see expansion. contraction, in grammar contraction, in writing: see abbreviation. contraction - reduction Project" and group financing, implementing our "E-SIGMA21 Program" for reducing costs and continuing to conduct other cross-organizational company wide management improvement measures. These efforts are devoted to further improving our performance and financial constitution and also reinforcing our management foundation. Our fiscal 2005 performance forecast is revised as follows from the one in the fiscal 2004 financial results announced on April 28, 2004:
Consolidated: Previous forecast Currently revised forecast
------------------ --------------------- -----------------------------
Net sales 3.4000 trillion yen 3.4000 trillion yen
(3% increase year-on-year)
------------------ --------------------- -----------------------------
Operating income 110.0 billion yen 120.0 billion yen
(29% increase year-on-year)
------------------ --------------------- -----------------------------
Income before 95.0 billion yen 100.0 billion yen
income taxes (18% increase year-on-year)
------------------ --------------------- -----------------------------
Net income 60.0 billion yen 70.0 billion yen
(56% increase year-on-year)
------------------ --------------------- -----------------------------
Non-consolidated: Previous forecast Currently revised forecast
----------------- -------------------- -------------------------------
Net sales 2.0500 trillion yen 2.0500 trillion yen
(3% increase year-on-year)
----------------- -------------------- -------------------------------
Ordinary profit 45.0 billion yen 50.0 billion yen
(20% increase year-on-year)
----------------- -------------------- -------------------------------
Net income 28.0 billion yen 28.0 billion yen
(6% increase year-on-year)
----------------- -------------------- -------------------------------
Note: The forecast of results above is based on assumptions deemed reasonable by the Company at the present time, and actual results may differ significantly from forecasts. Please refer to the Cautionary Statement in the last page. MANAGEMENT POLICY Management Policy The Mitsubishi Electric Group intends to contribute to a new society, industry and daily life based on the spirits of its corporate statement "Changes for the Better" as a foundation from which to achieve a "better tomorrow." With this end in view, the group will seek to establish a solid management base and sustainable growth with the help of "balanced management" from the three critical areas of "growth," "profitability and efficiency" and "soundness." Furthermore, we seek to fulfill ful·fill also ful·fil tr.v. ful·filled, ful·fill·ing, ful·fills also ful·fils 1. To bring into actuality; effect: fulfilled their promises. 2. the expectations of our customers, shareholders and other stakeholders Stakeholders All parties that have an interest, financial or otherwise, in a firm-stockholders, creditors, bondholders, employees, customers, management, the community, and the government. by channeling our efforts to further enhance corporate value through our self-reformation Noun 1. self-reformation - the act of improving yourself self-improvement auto-suggestion, autosuggestion, self-suggestion - a system for self-improvement developed by Emile Coue which was popular in the 1920s and 1930s as a strong conglomerate conglomerate, in business conglomerate, corporation whose asset growth, often very rapid, comes largely through the acquisition of, or merger with, other firms whose products are largely unrelated to each other or to that of the parent company. of electric and electronic businesses with robust synergy The enhanced result of two or more people, groups or organizations working together. In other words, one and one equals three! It comes from the Greek "synergia," which means joint work and cooperative action. . Policy on Profit Distribution With the ultimate aim of enhancing corporate value, our basic policy is to seek a comprehensive improvement in enhancing shareholder value by distributing as much profit as may be permitted by our current year earnings position, while at the same time retaining sufficient profit to strengthen the group's financial position. Policy on Reducing Minimum Stock Purchase Requirement Mitsubishi Electric recognizes that one of its most important management goals must be to enhance corporate value along with the number of stable, long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. shareholders. With this in mind, we will continue carrying out a meticulous me·tic·u·lous adj. 1. Extremely careful and precise. 2. Extremely or excessively concerned with details. [From Latin met study of the overall benefits and costs of reducing the size of purchase requirements for our stock-trading units. Corporate Agenda The Mitsubishi Electric Group will strive to further improve its performance and financial base and reinforce re·in·force v. 1. To give more force or effectiveness to something; strengthen. 2. To reward an individual, especially an experimental subject, with a reinforcer subsequent to a desired response or performance. 3. its management foundation. This shall be done by resolutely res·o·lute adj. Firm or determined; unwavering. [Middle English, dissolved, dissolute, from Latin resol pursuing the following management measures from the three perspectives of a balanced management - "growth," "profitability and efficiency" and "soundness." As a result, we will strive to further improve performance and the financial constitution while also reinforcing our business foundation. Specifically, we will pursue a growth strategy from the perspective of "further strengthening our strong businesses" ("VI strategy": reinforcing individual businesses; and "AD strategy": reinforcing the solutions business across multiple business fields. Further, we will promote "global integration," in which we aim to establish an optimal business structure from a global perspective and reinforce our business organization including area marketing and risk management centering on the high growth Chinese market. In addition, we will continue to tackle measures to further improve the financial organization, reduce costs and shrink shrink Vox populi noun A psychiatrist fixed costs fixed costs, n.pl the costs that do not change to meet fluctuations in enrollment or in use of services (e.g., salaries, rent, business license fees, and depreciation). . Additionally, we will proactively promote the "corporate philosophy" and "Seven Guiding Principles (trust, quality, technology, citizenship citizenship Relationship between an individual and a state in which the individual owes allegiance to the state and in turn is entitled to its protection. In general, full political rights, including the right to vote and to hold public office, are predicated on citizenship. , ethics ethics, in philosophy, the study and evaluation of human conduct in the light of moral principles. Moral principles may be viewed either as the standard of conduct that individuals have constructed for themselves or as the body of obligations and duties that a , environment and growth)" of the Mitsubishi Electric Group from the perspective of Corporate Social Responsibility. Fundamental Concept of Corporate Governance Corporate Governance The relationship between all the stakeholders in a company. This includes the shareholders, directors, and management of a company, as defined by the corporate charter, bylaws, formal policy, and rule of law. and Status of the Implementation of Measures Mitsubishi Electric has reformed its management structure by transforming to a "Company with Committee" structure. This transformation is further heightening height·en v. height·ened, height·en·ing, height·ens v.tr. 1. To raise or increase the quantity or degree of; intensify. 2. To make high or higher; raise. v.intr. the dynamistic and transparency (1) The quality of being able to see through a material. The terms transparency and translucency are often used synonymously; however, transparent would technically mean "seeing through clear glass," while translucent would mean "seeing through frosted glass." See alpha blending. of our management while also being used to reinforce the supervision of management and achieve sustainable growth. The transfer to "Company with Committee" structure has enabled a separation of supervision over management from executive functions Executive functions is a term synonymous with cognitive control, and used by psychologists and neuroscientists to describe a loosely defined collection of brain processes whose role is to guide thought and behaviour in accordance with internally generated goals or plans. , and now the board of directors is exercising the supervision over management and the executive officers are handling the management execution function. In addition, certain broad authority that had been within the exclusive realm of the board of directors has been transferred to the executive officers. Mitsubishi Electric presently has twelve directors (of which five are outside directors) providing advice and supervision to our company's management from an objective perspective. An auditing committee, nomination NOMINATION, This word has several significations. 1. An appointment; as, I nominate A B, executor of this my last will. 2. A proposition; the word nominate is used in this sense in the constitution of the United States, art. 2, s. committee and compensation committee have been established as internal organizations of the board of directors and each committee is comprised of five directors (of which three are outside directors). The auditing committee has dedicated independent staff assigned as·sign tr.v. as·signed, as·sign·ing, as·signs 1. To set apart for a particular purpose; designate: assigned a day for the inspection. 2. to it and assists the auditors AUDITORS, practice. Persons lawfully appointed to examine and digest accounts referred to them, take down the evidence in writing, which may be lawfully offered in relation to such accounts, and prepare materials on which a decree or judgment may be made; and to report the whole, together . A key characteristic of our management structure is separation of the chairman of the board, who is the head of our management supervisory su·per·vi·sor n. 1. One who supervises. 2. One who is in charge of a particular department or unit, as in a governmental agency or school system. 3. One who is an elected administrative officer in certain U.S. function, and the president, who is the chief executive officer. In addition, both the chairman and president are not members of the nomination and compensation committees. Clear-cut implementation of the separation of management supervision and execution is making our corporate governance much more effective. Each executive officer has responsibility within the scope of power conferred con·fer v. con·ferred, con·fer·ring, con·fers v.tr. 1. To bestow (an honor, for example): conferred a medal on the hero; conferred an honorary degree on her. to him to maintain compliance and secure efficient management. The conditions of their operation are audited by internal auditors Internal auditor An employee of a company who analyzes the company's accounting records to that the company is following and complying with all regulations. (audit department). The internal auditors (audit department) and external auditors The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. provide auditing reports to the auditing committee and responsible executive officer. The risk management organization is constructed by each executive officer at his own responsibility for within his own scope of responsibility. As for material matters concerned with the implementation of management, these are debated and decided by a board of executive officers constructed of all executive officers. This board enacts management participation and information sharing See data conferencing. by all executive officers, pursuit of managing synergy effects and multi-lateral risk management by the Mitsubishi Electric Group. Furthermore, there is no special interest relationship between our company and any of our outside directors. CONSOLIDATED AND NON-CONSOLIDATED FINANCIAL RESULTS 1. CONSOLIDATED HALF-YEAR RESULTS OF MITSUBISHI ELECTRIC
(In billions of yen except where noted)
----------------------------------------------------------------------
FY '05 1st half FY '04 1st half (A)/(B) FY '04
(A) (B) (%)
-------------- ---------------- ------------------ -------- ----------
Net sales 1,607.9 1,564.1 103 3,309.6
-------------- ---------------- ------------------ -------- ----------
Operating
income 43.2 12.0 358 92.7
-------------- ---------------- ------------------ -------- ----------
Income before
income taxes 32.0 16.8 190 84.7
-------------- ---------------- ------------------ -------- ----------
Net income 19.0 3.8 499 44.8
-------------- ---------------- ------------------ -------- ----------
Net income
per share 8.89 yen 1.78 yen 499 20.74 yen
-------------- ---------------- ------------------ -------- ----------
Note:
1) Consolidated financial FY '05 1st half: Apr. 1, 2004 -
charts made according Sept. 30, 2004
to U.S. GAAP. FY '04 1st half: Apr. 1, 2003 -
2) Company has 138 Sept. 30, 2003
consolidated FY '04: Apr. 1, 2003 -
subsidiaries. Mar. 31, 2004
2. NON-CONSOLIDATED HALF-YEAR RESULTS OF MITSUBISHI ELECTRIC
(In billions of yen except where noted)
----------------------------------------------------------------------
FY '05 1st half FY '04 1st half (A)/(B) FY '04
(A) (B) (%)
-------- ---------------- ---------------- ------- -------------------
Net
sales 928.2 911.3 102 1,996.5
-------- ---------------- ---------------- ------- -------------------
Ordinary
profit 22.2 21.4 104 41.7
-------- ---------------- ---------------- ------- -------------------
Net
income 7.0 17.2 41 26.3
-------- ---------------- ---------------- ------- -------------------
Dividend 2 yen None Annual
per (Interim (Interim - dividend 4.00 yen
share dividend) dividend) (Biannual
dividend) 4.00 yen
-------- ---------------- ---------------- ------- -------------------
Net
income
per
share 3.27 yen 8.02 yen 41 12.27 yen
-------- ---------------- ---------------- ------- -------------------
FY '05 1st half: Apr. 1, 2004 - Sept. 30, 2004
FY '04 1st half: Apr. 1, 2003 - Sept. 30, 2003
FY '04: Apr. 1, 2003 - Mar. 31, 2004
CONSOLIDATED PROFIT AND LOSS STATEMENT
(In millions of yen)
----------------------------------------------------------------------
FY '05 1st half FY '04 1st half
A B
----------------- -----------------
% of % of
total total
--------------------------------- ---------- ------ ---------- ------
Net sales 1,607,958 100.0 1,564,121 100.0
Cost of sales 1,199,000 74.6 1,195,563 76.4
Selling, general
and administrative expenses 365,689 22.7 356,461 22.8
--------------------------------- ---------- ------ ---------- ------
Operating income 43,269 2.7 12,097 0.8
Other income 17,156 1.1 29,840 1.9
Interest and
Dividends 4,598 0.3 4,393 0.3
Other 12,558 0.8 25,447 1.6
Other expenses 28,407 1.8 25,083 1.6
Interest 5,776 0.4 8,296 0.5
Other 22,631 1.4 16,787 1.1
--------------------------------- ---------- ------ ---------- ------
Income before income taxes 32,018 2.0 16,854 1.1
Income taxes 19,442 1.2 11,332 0.8
--------------------------------- ---------- ------ ---------- ------
Equity in earnings (losses) of
affiliated companies 6,506 0.4 (1,699) (0.1)
--------------------------------- ---------- ------ ---------- ------
Net income 19,082 1.2 3,823 0.2
--------------------------------- ---------- ------ ---------- ------
FY '04
------------- -----------------
A - B A/B % of
(%) total
----------------------------------------------- ---- ---------- ------
Net sales 43,837 103 3,309,651 100.0
Cost of sales 3,437 100 2,508,519 75.8
Selling, general
and administrative expenses 9,228 103 708,415 21.4
----------------------------------------------- ---- ---------- ------
Operating income 31,172 358 92,717 2.8
Other income (12,684) 57 62,181 1.9
Interest and
Dividends 205 105 8,868 0.3
Other (12,889) 49 53,313 1.6
Other expenses 3,324 113 70,114 2.1
Interest (2,520) 70 14,823 0.4
Other 5,844 135 55,291 1.7
----------------------------------------------- ---- ---------- ------
Income before income taxes 15,164 190 84,784 2.6
Income taxes 8,110 172 45,598 1.4
----------------------------------------------- ---- ---------- ------
Equity in earnings (losses) of
affiliated companies 8,205 - 5,653 0.2
----------------------------------------------- ---- ---------- ------
Net income 15,259 499 44,839 1.4
----------------------------------------------- ---- ---------- ------
FY '05 1st half: Apr. 1, 2004 - Sept. 30, 2004
FY '04 1st half: Apr. 1, 2003 - Sept. 30, 2003
FY '04: Apr. 1, 2003 - Mar. 31, 2004
CONSOLIDATED BALANCE SHEETS consolidated balance sheet A balance sheet in which assets and liabilities of a parent company and its controlled subsidiaries are combined, thereby presenting balance sheet items for the parent and its subsidiaries as if they were a single firm.
(In millions of yen)
----------------------------------------------------------------------
FY '05 FY '04
1st half (A) (B) ending
ending Sept. March 31st,
30th, 2004 2004 (A) - (B)
---------------------------------------------- ------------- ---------
(Assets)
Current assets 1,706,240 1,743,381 (37,141)
---------------------------------------------- ------------- ---------
Cash and cash equivalents 334,776 330,596 4,180
Short-term investments 25,358 32,240 (6,882)
Trade receivables 661,128 748,293 (87,165)
Inventories 469,051 401,619 67,432
Prepaid expenses and other
current assets 215,927 230,633 (14,706)
---------------------------------------------- ------------- ---------
Long-term trade receivables 11,619 15,998 (4,379)
---------------------------------------------- ------------- ---------
Investments 469,114 464,943 4,171
---------------------------------------------- ------------- ---------
Net property, plant and
equipment 560,006 566,383 (6,377)
---------------------------------------------- ------------- ---------
Other assets 450,380 434,518 15,862
---------------------------------------------- ------------- ---------
Total assets 3,197,359 3,225,223 (27,864)
============================================== ============= =========
(Liabilities and shareholders'
equity)
Current liabilities 1,249,902 1,315,739 (65,837)
---------------------------------------------- ------------- ---------
Bank loans and current portion
of long-term debt 270,995 345,147 (74,152)
Trade payables 565,976 619,407 (53,431)
Other current liabilities 412,931 351,185 61,746
---------------------------------------------- ------------- ---------
Long-term debt 574,498 559,408 15,090
---------------------------------------------- ------------- ---------
Retirement and severance
benefits 703,727 684,222 19,505
---------------------------------------------- ------------- ---------
Other fixed liabilities 15,222 15,810 (588)
---------------------------------------------- ------------- ---------
Minority interests 49,458 48,512 946
---------------------------------------------- ------------- ---------
Shareholders' equity 604,552 601,532 3,020
---------------------------------------------- ------------- ---------
Common stock 175,820 175,820 -
Capital surplus 210,686 210,672 14
Retained earnings 399,747 389,250 10,497
Accumulated other comprehensive
income (loss) (181,338) (173,837) (7,501)
Treasury stock at cost (363) (373) 10
---------------------------------------------- ------------- ---------
Total liabilities and
shareholders' equity 3,197,359 3,225,223 (27,864)
================================-------------- ============= =========
Balance of Debt 845,493 904,555 (59,062)
Accumulated other comprehensive
income (loss):
Foreign currency translation
adjustments (11,055) (16,448) 5,393
Minimum pension liability
adjustments (200,240) (192,844) (7,396)
Net unrealized gains on
securities 29,957 35,455 (5,498)
FY '05 1st half: Apr. 1, 2004 - Sept. 30, 2004
FY'04 1st half: Apr. 1, 2003 - Sept. 30, 2003
FY '04: Apr. 1, 2003 - Mar. 31, 2004
CONSOLIDATED CASH FLOW STATEMENT
(In millions of yen)
----------------------------------------------------------------------
FY '05 FY '04
1st half 1st half A-B FY '04
(A) (B)
-------------------------------- -------- --------- -------- ---------
I Cash flows from operating
activities
1 Net income 19,082 3,823 15,259 44,839
2 Adjustments to reconcile net
income to net cash provided
by operating activities
(1) Depreciation of tangible
fixed assets and other 52,928 50,371 2,557 118,386
(2) Deferred income taxes
(increase) (14,327) (1,435) (12,892) 20,119
(3) Decrease (increase) in
trade receivables 97,168 133,158 (35,990) (1,316)
(4) Decrease (increase) in
inventories (62,881) 6,259 (69,140) 50,686
(5) Decrease (increase) in
prepaid expenses and other
assets 20,891 (16,642) 37,533 (21,308)
(6) Increase (decrease) in
trade payables (55,319) (47,455) (7,864) 17,758
(7) Increase in other
liabilities 63,098 24,238 38,860 18,874
(8) Other, net (1,036) (10,057) 9,021 (4,527)
-------- --------- -------- ---------
Net cash provided by
operating activities 119,604 142,260 (22,656) 243,511
II Cash flows from investing
activities
1 Capital expenditure (58,323) (43,194) (15,129) (96,253)
2 Proceeds from sale of
property, plant and
equipment 12,305 7,829 4,476 17,722
3 Purchase of short-term
investments and investment
securities (27,255) (37,675) 10,420 (71,233)
4 Proceeds from sale of short-
term investments and
investment securities 27,599 34,581 (6,982) 75,252
5 Other, net 1,840 3,080 (1,240) 4,425
-------- --------- -------- ---------
Net cash used in investing
activities (43,834) (35,379) (8,455) (70,087)
-------- --------- -------- ---------
I + II Free cash flow 75,770 106,881 (31,111) 173,424
-------- --------- -------- ---------
III Cash flows from financing
activities
1 Proceeds from long-term debt 45,051 83,381 (38,330) 97,183
2 Repayment of long-term debt (58,408) (186,979) 128,571 (274,355)
3 Increase (decrease) in bank
loans, net (52,819) (785) (52,034) (15,280)
4 Dividends paid (8,585) (6,440) (2,145) (6,440)
5 Purchase of treasury stock (20) (283) 263 (310)
6 Reissuance of treasury stock 44 - 44 6
-------- --------- -------- ---------
Net cash provided by (used
in) financing activities (74,737) (111,106) 36,369 (199,196)
IV Effect of exchange rate
changes on cash and cash
equivalents 3,147 (1,887) 5,034 (7,227)
-------- --------- -------- ---------
V Net increase (decrease) in
cash and cash equivalents 4,180 (6,112) 10,292 (32,999)
VI Cash and cash equivalents at
beginning of period 330,596 363,595 (32,999) 363,595
-------- --------- -------- ---------
VII Cash and cash equivalents at
the end of period 334,776 357,483 (22,707) 330,596
-------------------------------- -------- --------- -------- ---------
FY '05 1st half: Apr. 1, 2004 - Sept. 30, 2004
FY '04 1st half: Apr. 1, 2003 - Sept. 30, 2003
FY '04: Apr. 1, 2003 - Mar. 31, 2004
CONSOLIDATED SEGMENT INFORMATION 1. Business Segment
(In millions of yen)
----------------------------------------------------------------------
FY '05 1st half FY '04 1st half
Business --------------------------- ---------------------------
Segment Operating Operating
% of income % of income
Sales (A) total (loss) Sales (B) total (loss)
============== ---------- ------ --------- ---------- ------ ---------
Energy and
Electric
Systems 316,006 17.6 (4,897) 324,760 18.8 (5,713)
-------------- ---------- ------ --------- ---------- ------ ---------
Industrial
Automation
Systems 395,722 22.0 43,315 336,815 19.5 26,022
-------------- ---------- ------ --------- ---------- ------ ---------
Information
and
Communi-
cation
Systems 269,321 15.0 (9,766) 331,625 19.2 (3,428)
-------------- ---------- ------ --------- ---------- ------ ---------
Electronic
Devices 81,555 4.5 3,653 87,338 5.1 (4,599)
-------------- ---------- ------ --------- ---------- ------ ---------
Home
Appliances 455,430 25.4 18,544 403,420 23.4 9,624
-------------- ---------- ------ --------- ---------- ------ ---------
Others 277,353 15.5 4,470 240,770 14.0 2,256
-------------- ---------- ------ --------- ---------- ------ ---------
Subtotal 1,795,387 100.0 55,319 1,724,728 100.0 24,162
-------------- ---------- ------ --------- ---------- ------ ---------
Eliminations (187,429) - (12,050) (160,607) - (12,065)
-------------- ---------- ------ --------- ---------- ------ ---------
Consolidated
Total 1,607,958 - 43,269 1,564,121 - 12,097
-------------- ---------- ------ --------- ---------- ------ ---------
FY '04
-----------------------------------
Business Segment
Operating
(A)/(B) income
(%) Sales % of total (loss)
===================== ============ =========== ========== ===========
Energy and Electric
Systems 97 797,448 21.9 25,912
--------------------- ------------ ----------- ---------- -----------
Industrial
Automation
Systems 117 709,695 19.4 66,413
--------------------- ------------ ----------- ---------- -----------
Information and
Communication
Systems 81 681,757 18.7 511
--------------------- ------------ ----------- ---------- -----------
Electronic Devices 93 170,442 4.7 (4,678)
--------------------- ------------ ----------- ---------- -----------
Home Appliances 113 782,256 21.4 19,317
--------------------- ------------ ----------- ---------- -----------
Others 115 508,475 13.9 8,266
--------------------- ------------ ----------- ---------- -----------
Subtotal 104 3,650,073 100.0 115,741
--------------------- ------------ ----------- ---------- -----------
Eliminations - (340,422) - (23,024)
--------------------- ------------ ----------- ---------- -----------
Consolidated Total 103 3,309,651 - 92,717
--------------------- ------------ ----------- ---------- -----------
Note: Intersegment sales FY '05 1st half: Apr. 1, 2004 -
are included in the above chart. Sept. 30, 2004
FY '04 1st half: Apr. 1, 2003 -
Sept. 30, 2003
FY '04: Apr. 1, 2003 -
Mar. 31, 2004
2. Geographic geographic /geo·graph·ic/ (je?o-graf´ik) in pathology, of or referring to a pattern that is well demarcated, resembling outlines on a map. geographic pertaining to geography. Segment
(In millions of yen)
----------------------------------------------------------------------
FY '05 1st half FY '04 1st half
-------------------- -------------------- A/B
Operating (%)
Operating income
Sales (A) income Sales (B) (loss)
====================== ========== ========= ========== ========= ====
Japan 1,348,470 23,523 1,315,178 (6,766) 103
---------------------- ---------- --------- ---------- --------- ----
North America 108,925 980 114,327 1,214 95
---------------------- ---------- --------- ---------- --------- ----
Asia
(excluding Japan) 246,913 16,566 202,212 12,807 122
---------------------- ---------- --------- ---------- --------- ----
Europe 124,308 4,220 99,187 1,455 125
---------------------- ---------- --------- ---------- --------- ----
Others 10,551 244 10,137 481 104
---------------------- ---------- --------- ---------- --------- ----
Subtotal 1,839,167 45,533 1,741,041 9,191 106
---------------------- ---------- --------- ---------- --------- ----
Eliminations (231,209) (2,264) (176,920) 2,906 -
---------------------- ---------- --------- ---------- --------- ----
Consolidated Total 1,607,958 43,269 1,564,121 12,097 103
---------------------- ---------- --------- ---------- --------- ----
FY '04
-------------------------------------
Sales Operating income
================================ =================== =================
Japan 2,842,354 55,880
-------------------------------- ------------------- -----------------
North America 216,639 2,918
-------------------------------- ------------------- -----------------
Asia
(excluding Japan) 390,921 26,087
-------------------------------- ------------------- -----------------
Europe 205,507 2,710
-------------------------------- ------------------- -----------------
Others 21,498 1,211
-------------------------------- ------------------- -----------------
Subtotal 3,676,919 88,806
-------------------------------- ------------------- -----------------
Eliminations (367,268) 3,911
-------------------------------- ------------------- -----------------
Consolidated Total 3,309,651 92,717
-------------------------------- ------------------- -----------------
Note: Intersegment sales are FY '05 1st half: Apr. 1, 2004 -
included in the above chart Sept. 30, 2004
FY '04 1st half: Apr. 1, 2003 -
Sept. 30, 2003
FY '04: Apr. 1, 2003 -
Mar. 31, 2004
3. Overseas Sales
(In millions of yen)
----------------------------------------------------------------------
FY '05 1st FY '04 1st
half half
--------------- ---------------
% of % of % of
Sales total Sales total A/B FY '04 total
(A) net (B) net (%) net
sales sales sales
================ ======== ====== ======== ====== ==== ======== ======
North America 170,077 10.6 156,523 10.0 109 305,712 9.3
---------------- -------- ------ -------- ------ ---- -------- ------
Asia
(excluding
Japan) 193,149 12.0 190,247 12.2 102 358,133 10.8
---------------- -------- ------ -------- ------ ---- -------- ------
Europe 136,500 8.5 109,447 7.0 125 220,935 6.7
---------------- -------- ------ -------- ------ ---- -------- ------
Others 34,135 2.1 26,892 1.7 127 60,150 1.8
---------------- -------- ------ -------- ------ ---- -------- ------
Total
overseas sales 533,861 33.2 483,109 30.9 111 944,930 28.6
---------------- -------- ------ -------- ------ ---- -------- ------
FY '05 1st half: Apr. 1, 2004 - Sept. 30, 2004
FY '04 1st half: Apr. 1, 2003 - Sept. 30, 2003
FY '04: Apr. 1, 2003 - Mar. 31, 2004
Cautionary Statement The expectation of operating results herein and any associated statement to be made orally with respect to the Company's current plans, estimates, strategies and beliefs and any other statements that are not historical facts are forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. . Words such as "expects", "anticipates", "plans", "believes", "scheduled", "estimated", "targeted" along with any variations of these words and similar expressions are intended to identify forward-looking statements which include but are not limited to projections of revenues, earnings, performance and production. While the statements herein are based on certain assumptions and premises premises n. 1) in real estate, land and the improvements on it, a building, store, shop, apartment, or other designated structure. The exact premises may be important in determining if an outbuilding (shed, cabana, detached garage) is insured or whether a person that the Company trusts and considers to be reasonable under the circumstances to the date of announcement, you are requested to kindly take note that actual operating results are subject to change due to any of the factors as contemplated hereunder Adv. 1. hereunder - in a subsequent part of this document or statement or matter etc.; "the landlord demises unto the tenant the premises hereinafter called the demised premises"; "the terms specified hereunder" hereafter, hereinafter 2. and/or and/or conj. Used to indicate that either or both of the items connected by it are involved. Usage Note: And/or is widely used in legal and business writing. any additional factor unforeseeable Un`fore`see´a`ble a. 1. Incapable of being foreseen. Adj. 1. unforeseeable - incapable of being anticipated; "unforeseeable consequences" unpredictable - not capable of being foretold as of the date of this announcement. Such factors materially affecting the expectations expressed herein shall include but are not limited to the following: (1) Any change in worldwide economic and social conditions as well as laws, regulations, taxation and other legislation (2) Changes in foreign currency exchange rates, especially yen/dollar rates (3) Changes in stock markets, especially in Japan (4) Changes in balance of demand and supply of products that may affect prices and volume, as well as material procurement conditions (5) Changes in the ability to acquire financing, especially in Japan (6) Changes in any patent and its licensing, including any dispute involving patent infringement patent infringement n. the manufacture and/or use of an invention or improvement for which someone else owns a patent issued by the government, without obtaining permission of the owner of the patent by contract, license or waiver. , that may affect operations (7) Technological change, the development of products using new technology, manufacturing and time-to-market (8) Business alliances with other companies About Mitsubishi Electric With over 80 years of experience in providing reliable, high-quality products to both corporate clients and general consumers all over the world, Mitsubishi Electric Corporation (TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). : 6503) is a recognized world leader in the manufacture, marketing and sales of electrical and electronic equipment used in information processing information processing: see data processing. information processing Acquisition, recording, organization, retrieval, display, and dissemination of information. Today the term usually refers to computer-based operations. and communications, space development and satellite communications, consumer electronics, industrial technology, energy, transportation and building equipment. The company recorded consolidated group sales Group sales Block sale (of large amounts) of securities to institutional investors. group sales The distribution of a new security issue to institutional clients. of 3,309 billion yen (US$31.2 billion(a)) in the year ended March 31, 2004. For more information visit http://global.mitsubishielectric.com (a)At an exchange rate of 106 yen to the US dollar, the rate given by the Tokyo Foreign Exchange Market on March 31, 2004. |
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