Mitsubishi Electric Announces Consolidated Financial Results for the First Quarter of Fiscal 2023

TOKYO--(BUSINESS WIRE)--Mitsubishi Electric Corporation (TOKYO: 6503) announced today its consolidated financial results for the first quarter, ended June 30, 2022, of the current fiscal year ending March 31, 2023 (fiscal 2023).

The full document on Mitsubishi Electric’s financial results can be viewed at the following link:
www.MitsubishiElectric.com/news

Consolidated Financial Results
Revenue:	1,067.7	billion yen	(Substantially unchanged year-on-year)
Operating profit:	33.9	billion yen	(59% decrease year-on-year)
Profit before income taxes:	46.8	billion yen	(48% decrease year-on-year)
Net profit attributable to Mitsubishi Electric Corp. stockholders:	33.4	billion yen	(46% decrease year-on-year)

The economy in the first quarter, from April through June 2022, of fiscal 2023 generally continued to see recovery in the corporate and household sectors in the U.S., while there was downward pressure on the corporate and household sectors due to the impact of lockdown caused by the expansion of COVID-19 in China. In Japan and Europe, the pace of recovery slowed down due primarily to a decrease in production. There was also the impact of the rise in a part of material prices and high logistics costs as well as the prolonged components shortage.

Revenue
Revenue increased by 1.2 billion yen year-on-year to 1,067.7 billion yen owing primarily to the weaker yen, despite a decrease due mainly to the impact of Shanghai’s lockdown. The Infrastructure segment saw decreases in revenue in all of its businesses: the public utility systems, the energy systems, and the defense & space systems. The Life segment saw an increase in the building systems business and a decrease in the air conditioning systems & home products business. The Industry and Mobility segment saw an increase in the automotive equipment business and a decrease in the factory automation systems business. The Business Platform segment saw increases in both of its businesses: the information systems & network service and the semiconductor & device.

Operating profit
Operating profit decreased by 48.8 billion yen year-on-year to 33.9 billion yen due mainly to decreases in the Life segment, the Industry and Mobility segment and the Infrastructure segment, despite an increase in the Business Platform segment. Operating profit ratio decreased by 4.6 points year-on-year to 3.2% due mainly to deteriorated cost ratio.
The cost ratio deteriorated by 2.5 points year-on-year despite the weaker yen, primarily as there was the impact of the rise in material prices and a deterioration in the Life segment, whose production level was lower due to the electronic components shortage. Selling, general and administrative expenses increased by 21.5 billion yen year-on-year, and the selling, general and administrative expenses to revenue ratio deteriorated by 2.0 points year-on-year. Other profit (loss) decreased by 0.3 billion yen year-on-year and the other profit (loss) to revenue ratio deteriorated by 0.1 points year-on-year.

Profit before income taxes
Profit before income taxes decreased by 42.6 billion yen year-on-year to 46.8 billion yen due primarily to a decrease in operating profit. The profit before income taxes to revenue ratio was 4.4%.

Net profit attributable to Mitsubishi Electric Corporation stockholders
Net profit attributable to Mitsubishi Electric Corporation stockholders decreased by 28.3 billion yen year-on-year to 33.4 billion yen due mainly to a decrease in profit before income taxes. The net profit attributable to Mitsubishi Electric Corporation stockholders to revenue ratio was 3.1%.

Forecast for Fiscal 2023
The consolidated earnings forecast for fiscal 2023, ending March 31, 2023, is unchanged from the previous forecast announced on April 28, 2022 as stated below.
Based on a certain premise, Mitsubishi Electric has taken into consideration the impact of improper testing, including costs for additional inspections and strengthening the quality control system. Depending on the progress of future discussions with customers and investigations, the Group may incur losses exceeding this premise or relating to the discovery of any other improper quality control practice. If any potential impact comes to light, it will be disclosed promptly. For more information regarding improper testing, please see “Relevant documents” of “Restoring trust: Our roadmap for reform.”
https://reform.MitsubishiElectric.com/relevant-documents/

Consolidated forecast for fiscal 2023
Revenue:	4,770.0	billion yen	(7% increase year-on-year)
Operating profit:	270.0	billion yen	(7% increase year-on-year)
Profit before income taxes:	295.0	billion yen	(5% increase year-on-year)
Net profit attributable to Mitsubishi Electric Corp. stockholders:	215.0	billion yen	(6% increase year-on-year)

Exchange rates in and after the second quarter of fiscal 2023 are 120 yen to the U.S. dollar, which is 5 yen weaker than the previous announcement; 130 yen to the euro, which is 5 yen weaker than the company’s previous announcement; and 18.0 yen to the Chinese yuan, which is unchanged from the previous announcement.

Note:

The results forecast 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 full document.

About Mitsubishi Electric Corporation
With more than 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 4,476.7 billion yen (U.S.$ 36.7 billion*) in the fiscal year ended March 31, 2022. For more information, please visit www.MitsubishiElectric.com
*U.S. dollar amounts are translated from yen at the rate of ¥122=U.S.$1, the approximate rate on the Tokyo Foreign Exchange Market on March 31, 2022