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Mitsubishi Electric’s reports financial results for H1 and 2QFY19

Mitsubishi Electric Corporation has reported its consolidated financial results for the H1 and Q2, ended September 30, 2018 of the current fiscal year ending March 31, 2019 FY19.

Consolidated half-year results (April 1, 2018–September 30, 2018). The global economy in the 1HFY19, from April through September 2018, saw a slight slowdown in China, a buoyant expansion in the US and gradual trends of recovery in Japan and Europe. In addition, from August, the yen weakened against the USD and appreciated against the euro compared to the same period of the previous fiscal year. Under these circumstances, consolidated net sales in the 1HFY19 increased by 3 percent compared to the same period of the previous fiscal year to 2170.1 billion yen with increased sales in the energy and electric systems, industrial automation systems, electronic devices, and home appliances segments. Consolidated operating income decreased by 18 percent compared to the same period of the previous fiscal year to 125.9 billion yen, due to decreased profits in the industrial automation systems, information and communication systems, electronic devices and home appliances segments. Income before income taxes decreased by 15 percent compared to the same period of the previous fiscal year to 141.2 billion yen.

Consolidated Q2 results (July 1, 2018–September 30, 2018). Consolidated net sales for this quarter, from July through September 2018, was 1119.1 billion yen, a 4 percent increase from the same period of the previous fiscal year, due primarily to increased sales in the energy and electric systems, industrial automation systems, information and communication systems, and home appliances segments. Consolidated operating income was 64.3 billion yen, a decrease of 17 percent from the same period of the previous fiscal year, with decreased profits in the industrial automation systems, information and communication systems, electronic devices, and home appliances segments. Income before income taxes decreased by 15 percent compared to the same period of the previous fiscal year to 72.5 billion yen. Net income attributable to the company’s stockholders decreased by 14 percent compared to the same period of the previous fiscal year to 54.7 billion yen.

Forecast for FY19 (year ending March 31, 2019). Considering the financial results for the 2QFY19, the latest situation of orders received and other factors, consolidated net sales for FY19 is expected to exceed the company’s previous forecast owing primarily to the weaker yen against the USD, while income is expected to fall below the previous forecast in the industrial automation systems and electronic devices segments. As a result, the company’s consolidated earnings forecast for FY19, ending March 31, 2019, has been revised from the announcement on July 30, 2018 as stated below.

Consolidated earnings forecast for FY19. Exchange rates in and after the 3QFY19 is 105 yen to the USD, which is five yen weaker from the company’s previous announcement, 125 yen to the euro, unchanged from the previous announcement, and 16.0 yen to the Chinese yuan, which is 0.5 yen stronger.

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