Mitsubishi Electric Announces Revised Consolidated Earnings Forecast for Fiscal 2013 (April 1, 2012-March 31, 2013)

TOKYO--(BUSINESS WIRE)--Mitsubishi Electric Corporation (TOKYO: 6503) announced today it has revised its consolidated earnings forecast for the current fiscal year, which was previously announced on October 31, 2012, due to the expected impact of recording a reserve to pay refunds in relation to the company’s electronic systems business, as announced separately today, as well as recent business performance and other factors.

Forecast for fiscal 2013 (April 1, 2012 – March 31, 2013)
					(In millions of yen)
	Net sales	Operating income	Income before income taxes	Net income attributable to Mitsubishi Electric Corp.	Basic net income per share attributable to Mitsubishi Electric Corp.
Previous forecast (A)	3,640,000	200,000	180,000	120,000	55.89 yen
Revised forecast (B)	3,520,000	150,000	40,000	50,000	23.29 yen
Change (B-A)	(120,000)	(50,000)	(140,000)	(70,000)	–
Percentage of change	(3.3%)	(25.0%)	(77.8%)	(58.3%)	–
Fiscal 2012 actual results	3,639,468	225,444	224,080	112,063	52.20 yen

Explanation of revised forecast

In view of China and other Asian markets experiencing economic slowdown, including stagnant demand for capital expenditures, as well as the impact of decreased production mainly by Japanese automotive-related manufacturers in China, Mitsubishi Electric’s consolidated net sales for fiscal 2013 ending March 31, 2013 are expected to fall below previous forecasts, mainly in the company’s Industrial Automation Systems, Electronic Devices and Home Appliances segments. Consolidated income before income taxes and net income attributable to Mitsubishi Electric Corporation is expected to fall below the previous forecast due to a decrease in operating income resulting from lower sales, the impact of recording a reserve for paying refunds related to electronic systems business and other factors.

Note: The forecast above is based on assumptions deemed reasonable by the company at the present time. Actual results may differ significantly from forecasts. Please refer to the cautionary statement below.

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. 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.

The Mitsubishi Electric Group is involved in the development, manufacture and sales in a wide range of fields including Energy and Electric Systems, Industrial Automation Systems, Information and Communication Systems, Electronic Devices and Home Appliances, and these operations stretch out globally, not only inside Japan, but also in North America, Europe, Asia and other regions. While the statements herein are based on certain assumptions and premises 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 and/or any additional factor unforeseeable 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)	Important trends
	The Mitsubishi Electric Group’s operations may be affected by trends in the global economy, social conditions, laws, tax codes, and regulations.
(2)	Foreign currency exchange rates
	Fluctuations in foreign currency markets may affect Mitsubishi Electric’s sales of exported products and purchases of imported materials that are denominated in U.S. dollars or Euros, as well as its Asian production bases’ sales of exported products and purchases of imported materials that are denominated in foreign currencies.
(3)	Stock markets
	A fall in stock market prices may cause Mitsubishi Electric to record devaluation losses on marketable securities, or cause an increase in retirement benefit obligations in accordance with a decline in the fair value of pension assets.
(4)	Supply/demand balance for products and procurement conditions for materials and components
	A decline in prices and shipments due to changes in the supply/demand balance, as well as an increase in material prices due to a worsening of material and component procurement conditions may adversely affect the Mitsubishi Electric Group’s performance.
(5)	Fund raising
	An increase in interest rates, the yen interest rate in particular, would increase Mitsubishi Electric’s interest expenses.
(6)	Significant patent matters
	Important patent filings, licensing, copyrights and patent-related disputes may adversely affect related businesses.
(7)	Environmental legislation or relevant issues
	We may incur losses or expenses owing to changes in environmental legislation or the occurrence of environmental issues. Such changes in legislation or the occurrence of environmental issues may also impact manufacturing and all corporate activities of the Mitsubishi Electric Group.
(8)	Flaws or defects in products or services
	We may incur losses or expenses resulting out of flaws or defects in products or services, and the lowered reputation of the quality of all our products and services may affect the entire Mitsubishi Electric group.
(9)	Litigation and other legal proceedings
	The Mitsubishi Electric Group’s operations may be affected by lawsuits or other legal proceedings against Mitsubishi Electric, its subsidiaries and/or equity-method affiliated companies.
(10)	Disruptive changes
	Disruptive changes in technology, development of products using new technology, timing of production, and market introduction may adversely affect the Mitsubishi Electric Group’s performance.
(11)	Business restructuring
	The Mitsubishi Electric Group may record losses due to restructuring measures.
(12)	Natural disasters
	The Mitsubishi Electric Group’s operations, particularly manufacturing activities, may be affected by the occurrence of earthquakes, typhoons, tsunami, fires and other large-scale disasters.
(13)	Other significant factors
	The Mitsubishi Electric Group’s operations may be affected by the outbreak of social or political upheaval due to terrorism, war, pandemic by new strains of influenza and other diseases, or other factors.

About Mitsubishi Electric Corporation

With over 90 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. Embracing the spirit of its corporate statement, Changes for the Better, and its environmental statement, Eco Changes, Mitsubishi Electric endeavors to be a global, leading green company, enriching society with technology. The company recorded consolidated group sales of 3,639.4 billion yen (US$ 44.4 billion*) in the fiscal year ended March 31, 2012. For more information visit http://www.MitsubishiElectric.com
*At an exchange rate of 82 yen to the US dollar, the rate given by the Tokyo Foreign Exchange Market on March 31, 2012