Mitsubishi Electric Corporation (TOKYO:6503) announced today its consolidated financial results for the first quarter, ended June 30, 2021, of the current fiscal year ending March 31, 2022 (fiscal 2022).

The full document on Mitsubishi Electric’s financial results can be viewed at the following link:

www.MitsubishiElectric.com/news

Consolidated Financial Results

The economy in the first quarter, from April through June 2021, of fiscal 2022 generally continued to see recovery in the corporate sector in Japan, the U.S. and Europe, while the paces of recovery in the household sector varied depending on the situation of the expansion of the novel coronavirus diseases (COVID-19). China also continued to see recovery primarily in export and manufacturing since the first half of the previous fiscal year.

As a result, the financial results for the first quarter improved significantly from the same period of the previous fiscal year that experienced a serious impact of COVID-19.

Revenue

Revenue in the first quarter increased by 208.2 billion yen from the same period of the previous fiscal year to 1,066.4 billion yen due primarily to increased revenue in Industrial Automation Systems, Home Appliances and Electronic Devices segments. Industrial Automation Systems segment saw an increase in the factory automation systems business due mainly to an increase in demand relating to semiconductor, electronic components, smartphones and lithium-ion battery worldwide. The automotive equipment business also increased as demand for new cars recovered in all regions except for China, where demand had been recovering in the first quarter of the previous fiscal year. Home Appliances segment increased due mainly to an increase in air conditioners particularly in Europe and North America. Electronic Devices segment increased due primarily to recovery in demand for power modules.

Operating Profit

Operating profit increased by 62.5 billion yen from the same period of the previous fiscal year to 82.7 billion yen due mainly to increased operating profit in Industrial Automation Systems and Home Appliances segments. Operating profit ratio improved by 5.4% from the same period of the previous fiscal year to 7.8%.

The cost ratio improved by 2.1% from the same period of the previous fiscal year due primarily to higher operating ratio caused by increased revenue of Industrial Automation Systems and Home Appliances segments in addition to the yen depreciating against other currencies. Selling, general and administrative expenses increased by 18.5 billion yen from the same period of the previous fiscal year, but selling, general and administrative expenses to revenue ratio improved by 3.2%. Other profit (loss) increased by 0.7 billion yen from the same period of the previous fiscal year, while other profit (loss) to revenue ratio improved by 0.1%.

Profit before income taxes

Profit before income taxes increased by 62.4 billion yen from the same period of the previous fiscal year to 89.5 billion yen due primarily to an increase in operating profit. Profit before income taxes to revenue ratio was 8.4%.

Net profit attributable to Mitsubishi Electric Corporation stockholders

Net profit attributable to Mitsubishi Electric Corporation stockholders increased by 43.9 billion yen from the same period of the previous fiscal year to 61.8 billion yen due mainly to increased profit before income taxes. Net profit attributable to Mitsubishi Electric Corporation stockholders to revenue ratio was 5.8%.

Forecast for Fiscal 2022

Revenue for fiscal 2022, ending March 31, 2022, is expected to exceed the company’s previous forecast announcement on April 28, 2021 by 20.0 billion yen due to strong business performance in the first quarter, while the profits are expected to remain unchanged as there are concerns about the procurement of semiconductor and electronic components as well as the impact of material prices soaring.

At present, the company cannot foresee the impact of improper inspections at Nagasaki Works and has not incorporated it into its consolidated earnings forecast for the current fiscal year. If any potential impact comes to light, it will be disclosed promptly. For more details, please see “Impact of improper testing at Nagasaki Works.” In the full document.

Consolidated forecast for fiscal 2022

Exchange rates in and after the second quarter of fiscal 2022 is 105 yen to the U.S. dollar, which is unchanged from the previous announcement; 125 yen to the euro, which is unchanged from the company’s previous announcement; and 16.5 yen to the Chinese yuan, which is unchanged from the previous announcement.

About Mitsubishi Electric Corporation

With 100 years of experience in providing reliable, high-quality products, Mitsubishi Electric Corporation (TOKYO: 6503) is a recognized world leader in the manufacture, marketing and sales of electrical and electronic equipment used in information processing and communications, space development and satellite communications, consumer electronics, industrial technology, energy, transportation and building equipment. Mitsubishi Electric enriches society with technology in the spirit of its “Changes for the Better.” The company recorded a revenue of 4,191.4 billion yen (U.S.$ 37.8 billion*) in the fiscal year ended March 31, 2021. For more information, please visit www.MitsubishiElectric.com

*U.S. dollar amounts are translated from yen at the rate of ¥111=U.S.$1, the approximate rate on the Tokyo Foreign Exchange Market on March 31, 2021

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