RNS Number:4210K
Mitsubishi Electric Corporation
28 April 2003
Investor Relations Inquiries,
Yasumitsu Kugenuma
Corporate Finance Department
Tel:+81-3-3218-2391
Yasumitsu.Kugenuma@hq.melco.co.jp
Media Contact:
Robert Barz
Public Relations Department
Tel:+81-3-3218-2346
Robert.Barz@hq.melco.co.jp
MITSUBISHI ELECTRIC ANNOUNCES FINANCIAL RESULTS
(APRIL 1,2002 - MARCH 31,2003)
TOKYO, April 28, 2003 - Mitsubishi Electric today announced its financial
results for the fiscal year ended March 31, 2003 as follows:
Consolidated
Net sales 3.6390 trillion yen (100% compared to last year)
Operating income 63.1 billion yen
Income before income taxes 2.4 billion yen
Net income - 11.8 billion yen
Non-consolidated
Net sales 2.3192 trillion yen (4% decrease from last year)
Operating income 0.6 billion yen
Ordinary profit 26.4 billion yen
Net income -12.1 billion yen
In the 2002 business environment, although a generally modest recovery proceeded
in the global economy, increased uncertainty over future prospects corresponding
to the Iraq issue and other such factors as employment instability clearly
slowed the speed of economic recovery. As for the Japanese economy, production
activities began to pick up with a recovery in exports and progress in inventory
adjustment. In addition to the continued stagnant capital investment of the
private sector caused by uncertainty over future prospects, bad employment and
income situations prevented consumer spending from achieving a full recovery,
and has caused the severe business environment to continue.
Under these circumstances, Mitsubishi Electric has promoted a reform of its
business structure through total adherence to the "Focus and Concentration"
policy, including a new joint venture set up with Toshiba Corporation in the
field of industrial electric and automation system businesses and another new
joint venture set up with Hitachi Ltd. on April 1, 2003 in the semiconductor
business concerning mainly system LSI. These measures are being taken to improve
and strengthen profitability in each business segment. Moreover, Mitsubishi
Electric has proactively promoted company wide business improvement measures and
striven to quickly improve performance and their financial standing through
various measures, including "EA 21 Activities" which aim to reduce assets and
fixed costs, and the "Sigma 21 Project Activities" which aim for drastic cost
reductions.
However, Mitsubishi Electric's performance in fiscal 2003 resulted as per above
due to the valuation losses in financial shares, which were caused by equity
market downturn and the deferred tax assets reassessment, which is required
under the newly implemented taxation relying on a pro forma tax basis.
Financial Position (Consolidated)
Assets, liabilities, and capital
At the end of the current year, total assets were down 383.7 billion yen to
3,673.6 billion yen compared to end of last fiscal year due mainly to the
success of our continuing efforts to trim assets and to our restructure and
realignment program implementations of affiliated company operations. One major
factor in achieving this was the reduction of inventories by 132.8 billion yen
primarily through an improved efficiency and the spinning off of the electrical
power system and transformer business. Other major factors include the reduction
of tangible fixed assets by 166.1 billion yen through a reduction of capital
expenditure in areas such as information and communications systems, and
electronic devices, to accommodate the decline in IT-related demand, the
elimination of our domestic financial subsidiary from our consolidated
subsidiaries by the partial sale of our shares, and the spin-off of our electric
power systems and transformer business. Investment securities were also reduced
by 87.3 billion yen as a result of such factors as the decline in their market
value.
The outstanding balance of debts and bonds was reduced by 369.8 billion yen to
1,184.2 billion yen compared to end of last fiscal year, thereby also reducing
the group's debt ratio to 32.2% (down 6.1 points year-on-year). Also, another
factor is the reduction in advance which helped reduce our other short-term
liabilities by 97.1 billion yen. On the other hand, our retirement and severance
benefits increased by 246.9 billion yen, due primarily to the need to post
adjustments to recognized minimum pension liability as the result of an increase
in our projected benefit obligation due to the use of a lower discount rate and
due to a decline in the value of our pension assets due mainly to the collapse
in share prices.
Capital declined by 147.1 billion yen to 394.5 billion yen compared to end of
last fiscal year due principally to the posting of a net loss of 11.8 billion
yen this fiscal year and an increased deduction for adjustments of the minimum
pension liability. The group's shareholders equity ratio fell to 10.7% (down 2.7
points year-on-year).
We expect our total assets and debts to be further reduced at the end of FY 2004
following events such as our system LSI and related semiconductor business spin-
off, which took place on April 1,2003.
Cash Flow
Free cash flow in the current fiscal year was 144.7 billion yen thanks primarily
to an increase in cash flow from operating activities of 125.0 billion yen to
238.4 billion yen (revenue) year-on-year, and also a reduction of 90.4 billion
yen to 93.6 billion yen (expenditure) year-on-year in our investment cash flow
helped by selective capital investment. Our cash flow from financing activities
amounted to 229.9 billion yen following the repayment of debts and redemption of
bonds to improve our financial position.
FY'99 FY'00 FY'01 FY'02 FY '03
Debt repayment period 10.1 years 4.0 years 3.6 years 13.0 years 5.7 years
Interest coverage ratio 3.5 times 9-4 times 11.0 times 4.0 times 10.0 times
* Debt repayment period: Interest-bearing debts divided by cash flow from
operating activities.
Interest coverage ratio: Cash flow from operating activities divided by
interest paid
Consolidated Results by Business Segment
In the Energy and Electric Systems segment, compared to last fiscal year, sales
decreased by 6% to 861.1 billion yen and operating income increased by 12.8
billion yen to 59.4 billion yen.
In this segment, the social infrastructure business posted a year-on-year
decrease in both sales and orders received due to sluggish capital investment by
domestic power companies, manufacturing sectors and other companies, as well as
in public sectors, decreases in large overseas projects and spin-offs of
electric and transformer equipment business. In the Building Systems, domestic
demand was stagnant but orders received were equivalent to the previous fiscal
year thanks to increases in contracts from the Chinese, South Korean and Middle
Eastern markets. In addition, with the completion of many large projects in the
Tokyo metropolitan area and increased demand in the Chinese market, resulted in
higher year-on-year sales.
As a result, total sales for this segment decreased by 6% year-on-year.
Operating income increased by 12.8 billion yen due to segment wide cost cutting
efforts.
The Industrial Automation Systems segment experienced a 6% increase in sales to
639.4 billion yen and operating income increased by 24.8 billion yen to 57.9
billion yen compared to last fiscal year.
Industrial equipment business posted year-on-year improvements in orders for,
and sales of, FA equipment, helped by increased demand particularly for
semiconductor and liquid crystal manufacturing equipment both from domestic
market sources and from overseas markets, notably Taiwan, South Korea, and
China. Reduced demand for domestic production facilities and building and
construction projects led to a year-on-year fall in orders and sales of electric
motors and power distribution products. Despite weak domestic demand, orders and
sales of industrial mechatronics equipment grew year-on-year as the result of
growing demand in overseas markets. Sales for the automotive equipment business
in this segment were higher than last fiscal year due to the support of strong
exports to the United States and Europe by domestic automobile manufacturers.
As a result, total sales for this segment increased by 6% year-on-year.
Operating income increased by 24.8 billion yen due to business scale expansion
and cost improvements.
In the Information and Communication Systems segment, sales fell 10% to 686.4
billion yen compared to last fiscal year and thus resulted in an operating loss
of 27.2 billion yen, which is an improvement of 62.9 billion yen.
In this segment, both orders and sales for the communications business decreased
year-on-year due to reorganization of the European mobile handset business and
sluggish capital investment in the telecom infrastructure by the operators. In
the information systems and services business, the system integration business
expanded thanks to big projects for large systems, but sales were lower, year-
on-year, due to decreased hardware sales. In the space business, both orders and
sales decreased year-on-year due to the between season of large projects for the
public sector. For the defense equipment business, orders received decreased
year-on-year due to between seasons for big projects, but sales maintained the
same levels as last fiscal year.
As a result, total sales for this segment decreased 10% year-on-year.
Operating income improved by 62.9 billion yen due to promotion of structural
reforms in the mobile handset business.
The Electronic Devices segment recorded sales of 460.4 billion yen in the period
under review, a 2% decrease year-on-year and recorded an operating loss of 53.0
billion yen, which is an improvement of 27.4 billion yen against last fiscal
year.
Semiconductor business posted an improvement in orders and sales thanks to
growing demand for multiple memory packages, system LSIs, artificial retina
LSIs, optical devices and the like for the mobile handsets with digital camera
market and the recordable DVDs. However, the liquid crystal business posted a
year-on-year decline in orders and sales due to price drops resulting from over-
production by Taiwanese and South Korean manufacturers.
As a result, total sales for this segment decreased 2% year-on-year.
Operating income improved by 27.4 billion yen due to cost reductions.
In the Home Appliances segment, sales increased by 9% to 789.1 billion yen
compared to last fiscal year and operating income was 36.1 billion yen, which is
a decrease of 0.9 billion yen.
In this segment, overall sales were higher than the previous fiscal year. In
summary, sales of "all electronic products" in Japan such as hot water supply
systems and solar power generation systems, DVD-related equipments, packaged air
conditioners and home air conditioners for the European market and projection
TVs for the US market did well. On the other hand, sales of home air
conditioners and refrigerators in Japan decreased due to sluggish consumption.
In addition, packaged air conditioners and lighting equipment suffered a
decrease in sales due to the slowdown in non-residential building construction
starts and sluggish corporate capital investment.
Consequently, sales in this segment increased 9% year-on-year.
Operating income decreased by 0.9 billion yen due to a fall in prices.
In the Others segment, sales decreased 1% to 566.1 billion yen compared to last
fiscal year, and operating income increased by 2.5 billion yen to 11.0 billion
yen.
Sales of the group's affiliates related to logistic business increased year-on-
year but sales of the group's affiliates related to our engineering and real
estate business declined.
As a result, total sales for this segment decreased 1% year-on-year.
Operating income improved by 2.5 billion yen due to substantial cost reductions.
Dividend Policy
Due primarily to the valuation loss of shares and the reassessment of our
deferred tax asset following the introduction of newly implemented taxation
relying on a proforma tax basis, we have been obliged to post a net loss for FY
2003. However, following implementation of a raft of measures to improve the
group's operational management, our financial position is improving and
profitability recovering. As a result, we will be resuming dividend payment with
a year-end dividend of 3 yen per share. We will also be looking to meet
shareholder expectations by continuing to strengthen our financial standing and
boost profitability. (Note: No dividend was paid last year.)
Forecast results for fiscal year 2004 ending March 31,2004
In terms of the future business environment, future prospects remain extremely
uncertain due to more marked slowdown in the global economic recovery and the
continuing international political and economic instability. Under these
circumstances, Mitsubishi Electric will further strive to improve and enhance
profitability in each business segment, and also further improve performance and
our financial standing while reinforcing our business and management foundation
through the steady implementation of further growth strategies for expanding
added value. Our present performance forecast for fiscal 2004 is as follows:
Consolidated
Net sales 3.2500 trillion yen (11% decrease year-on-year)
Operating income 75.0 billion yen (19% increase year-on-year)
Income before income taxes Nil
Net income 5.0 billion yen
Non-consolidated
Net sales 2.0000 trillion yen (14% decrease year-on-year)
Operating income 30.0 billion yen (increase by 49 times, year-on-year)
Ordinary profit 25.0 billion yen (6% decrease year-on-year)
Net income 20.0 billion yen
The above consolidated business projections include a loss of approximately 50.0
billion yen (approximately 30.0 billion yen after tax effect) in anticipation of
the impact of repayment of the subrogated portion of our employee pension fund
to the government. This will also result in the elimination of a portion of the
minimum pension liability adjustments on our consolidated balance sheet and an
accompanying increase in shareholders' equity of approximately 100 billion yen.
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.
MANAGEMENT POLICY
Management Policy
The Mitsubishi Electric Group will contribute to a new society, industry and
life that leads to a "better tomorrow" based on the spirit of the corporate
statement "Changes for the Better." With this corporate stance, Mitsubishi
Electric will implement management improvement measures from the three
perspectives of "Growth," "Profitability & Efficiency" and "Soundness," aiming
to quickly establish a solid business foundation. Based on this strategy,
Mitsubishi Electric will strive to further enhance corporate value to satisfy
all the expectations of our customers, shareholders and other stakeholders.
Policy for Profit Distribution
With the ultimate target of enhancing corporate value, Mitsubishi Electric's
basic policy is to comprehensively improve shareholder profitability both in
terms of profit distribution in line with the earnings for the relevant fiscal
year, and reinforcement of our financial standing by increasing internal
reserves.
Policy on Reducing Minimum Stock Purchase Requirement
Mitsubishi Electric recognizes that increasing corporate value and acquisition
of long-term and stable investors are important managerial issues. Mitsubishi
Electric has been considering the effects and expenses related to reducing the
minimum stock purchase requirement and will continue to carefully study this
issue.
Corporate Agenda
In the extremely uncertain business environment, Mitsubishi Electric will devote
itself further to improving and enhancing profitability in its business
segments. Mitsubishi Electric will also strive for further improvement in
performance and financial standing while seeking to reinforce its business
foundation by implementing steady growth strategies to achieve greater added
value.
Specifically, Mitsubishi Electric will strive to further enhance profitability
by reforming its business structure through total implementation of its "Focus
and Concentration" policy and accelerate global business development. Mitsubishi
Electric will continue to proactively promote business improvement measures
across the company, including reducing assets and fixed costs, reforming the
procurement structure and implementing activities to improve the financial
standing. Moreover, Mitsubishi Electric will strive to expand added value by
implementing growth strategies that utilize its collective strength, focusing on
products with competitive advantages in the market to quickly achieve a solid
business standing and sustainable development.
Basic Policy for Corporate Governance and the Current Status
Mitsubishi Electric studied our response to the Commercial Code amendment
enacted in 2002 and decided to transform itself into the "Company with Committee
System" by referring to the general stockholders' meeting to be held in June
2003. Through this governance structure reform Mitsubishi Electric will strive
to achieve "sustainable growth" as well as to enable more flexible operations,
to further enhance management transparency and to reinforce the supervisory
functions of management.
Mitsubishi Electric decided to appoint five outside directors and establish
three committees:
Auditing, Nomination and Compensation. Each of the three committees will have
five directors, three of which are outside directors. Furthermore Mitsubishi
Electric is considering assigning full-time staff to the Auditing Committee.
Each executive officer will execute operations and internal control for his or
her responsible area. The Auditing Committee will strengthen information sharing
with internal and external audit organizations (certified public accountants)
and work to organically link and heighten the efficiency of management audit
functions. No conflicts of interest exist between the outside directors and
Mitsubishi Electric.
Other Important Management Issues
Mitsubishi Electric and Hitachi Ltd. integrated their semiconductor businesses
and set up a joint venture concerning mainly system LSI by establishing Renesas
Technology Corporation on April 1,2003.
Outline of New Joint Venture Company:
(1) Company name: Renesas Technology Corporation
(2) Business description: Development, design, manufacture,
sale and servicing of system LSI
(microcomputer, logic, analog,
etc.), discrete semiconductors,
memory SRAM, etc.
(3) Paid-in capital: 50 billion yen
(4) Ownership: Mitsubishi Electric 45%, Hitachi
55%
CONSOLIDATED AND NON-CONSOLIDATED FINANCIAL RESULTS
1. CONSOLIDATED FINANCIAL RESULTS
(In billions of yen)
FY'03 (A) FY'02 (B) (A)/(B)
(April 1, 2002-March 31, 2003) (April 1, 2001-March 31, 2002) %
Net sales 3,639.0 3,648.9 100
Operating profit
(loss) 63.1 (68.0) -
Income (loss) before income taxes 2.4 (155.1) -
Net income (loss) (11.8) (77.9) -
Net income (loss) per share (in
yen) (5.51) (36.31) -
Fiscal 2003: April 1, 2002 - March 31, 2003
1) Consolidated financial charts made according to U.S. GAAP.
2) Company has 142 consolidated subsidiaries.
2. NON-CONSOLIDATED FINANCIAL RESULTS
(In billions of yen)
FY '03 (A) FY '02 (B) (A)/(B)
(April 1,2002-March 31, 2003)(April 1, 2001 - March 31, 2002) %
Net sales 2,319.2 2,409.3 96
Ordinary profit (loss) 26.4 (109.5) -
Net income (loss) (12.1) (143.6) -
Dividend per share
Annual dividend 3 -
Interim dividend - -
Term-end Biannual dividend 3 -
Net income (loss) per share (in yen) (5.67) (66.92)
Fiscal 2003: April 1, 2002 - March 31, 2003
CONSOLIDATED PROFIT AND LOSS STATEMENT
(In millions of yen)
FY'03 FY'02
(A) (B) Comparison to (A)/(B)
(April 1, %of total (April 1, %of total last year %
2002-Mar. 2001-Mar. (A)-(B)
31,2003) 31,2002)
Net sales 3,639,071 100.0 3,648,986 100.0 (9,915) 100
Cost of sales 2,782,180 76.5 2,842,658 77.9 (60,478) 98
Selling, general and
administrative expenses 793,751 21.8 874,355 24.0 (80,604) 91
Operating income 63,140 1.7 (68,027) (1.9) 131,167 -
(loss)
Non-operating income 57,236 1.6 48,645 1.3 8,591 118
Interest and
Dividends 11,486 0.3 14,246 0.4 (2,760) 81
Other income 45,750 1.3 34,399 0.9 11,351 133
Non-operating
expenses 117,901 3.2 135,760 3.7 (17,859) 87
Interest 20,407 0.5 28,799 0.8 (8,392) 71
Other 97,494 2.7 106,961 2.9 (9,467) 91
Income (loss) before
income taxes 2,475 0.1 (155,142) (4.3) 157,617 -
Income tax 16,332 0.5 (74,244) (2.1) 90,576 -
Equity in earnings of
affiliated companies 2,032 0.1 2,928 0.1 (896) 69
Net income (loss) (11,825) (0.3) (77,970) (2.1) 66,145 -
Fiscal 2003: April 1, 2002 - March 31, 2003
CONSOLIDATED BALANCE SHEETS
(In millions of yen)
FY'03 March 31, 2003 (A) FY'02 March 31, 2002 (B) (A)-(B)
(Assets)
Current assets 1,937,537 2,157,889 (220,352)
Cash and cash equivalents 363,595 454,890 (91,295)
Short-term investments 22,523 13,793 8,730
Trade receivables 821,943 818,817 3,126
Inventories 510,750 643,642 (132,892)
Prepaid expenses and other
current assets 218,726 226,747 (8,021)
Long-term receivables 19,795 40,150 (20,355)
Investments 359,961 447,283 (87,322)
Net property, plant and
equipment 727,770 893,965 (166,195)
Other assets 628,574 518,117 110,457
Total assets 3,673,637 4,057,404 (383,767)
(Liabilities and shareholders' equity)
Current liabilities 1,589,322 1,960,863 (371,541)
Bank loans and current portion
of long-term debt 555,863 813,865 (258,002)
Trade payables 650,696 667,078 (16,382)
Other current liabilities 382,763 479,920 (97,157)
Long-term debt 628,361 740,180 (111,819)
Employee retirement and
severance benefits 995,765 748,779 246,986
Other fixed liabilities 11,596 10,639 957
Minority interests 54,006 55,233 (1,227)
Shareholders' equity 394,587 541,710 (147,123)
Capital 175,820 175,820 -
Capital surplus 210,671 210,644 27
Retained earnings 350,851 362,676 (11,825)
Accumulated other
comprehensive income (loss) (342,687) (207,420) (135,267)
Treasury stock at cost (68) (10) (58)
Total liabilities and
stockholders' equity 3,673,637 4,057,404 (383,767)
Balance of Debt 1,184,224 1,554,045 (369,821)
Other comprehensive income (loss)
Foreign currency translation
adjustments (686) 3,073 (3,759)
Minimum pension liability
adjustments (346,546) (221,543) (125,003)
Net unrealized gains
on securities 4,545 11,050 (6,505)
Fiscal 2003: April 1, 2002 - March 31, 2003
CONSOLIDATED CASH FLOW
(In millions of yen)
FY'03 April 1,2002-March 31,2003 FY'02 April 1,2001 -March (A)-(B)
(A) 31,2002 (B)
I Cash flows from operating activities
1 Net income (loss) (11,825) (77,970) 66,145
2 Adjustments to reconcile net
income (loss) to net cash provided
by operating activities
(1) Depreciation 208,884 230,518 (21,634)
(2) Deferred income taxes (27,669) (115,715) 88,046
(3) Decrease (increase) in trade
receivables (36,183) 170,543 (206,726)
(4) Decrease in inventories 96,715 83,135 13,580
(5) Decrease (increase) in prepaid
expenses and other assets (1,702) 18,434 (20,136)
(6) Increase (decrease) in trade
payables 53,813 (226,930) 280,743
(7) Increase (decrease) in other
liabilities (38,877) (3,214) (35,663)
(8) Other, net (4,691) 34,628 (39,319)
Net cash provided by operating
activities 238,465 113,429 125,036
II Cash flows from investing activities
1 Capital expenditure (133,223) (221,092) 87,869
2 Proceeds from sale of property,
plant and equipment 17,449 16,344 1,105
3 Purchase of short-term
investments and investment
securities (37,068) (54,998) 17,930
4 Proceeds from sale of short-term
investments and investment
securities 56,463 75,760 (19,297)
5 Other, net 2,694 (169) 2,863
Net cash used in investing
activities (93,685) (184,155) 90,470
I + II Free cash flow 144,780 (70,726) 215,506
III Cash flows from financing activities
1 Proceeds from long-term debt 304, 814 439,388 (134,574)
2 Repayment of long-term debt (415,445) (320,417) (95,028)
3 Increase (decrease) in bank
loans, net (118,853) 16,955 (135,808)
4 Dividends paid - (12,883) 12,883
5 Purchase of treasury stock (491) - (491)
Net cash provided by (used in)
financing activities (229,975) 123,043 (353,018)
IV Effect of exchange rate changes
on cash and cash equivalents (6,100) 8,198 (14,298)
V Net increase (decrease) in cash
and cash equivalents (91,295) 60,515 (151,810)
VI Cash and cash equivalents at
beginning of period 454,890 394,375 60,515
VII Cash and cash equivalents at
the end of period 363,595 454,890 (91,295)
Fiscal 2003: April 1, 2002 - March 31, 2003
CONSOLIDATED SALES AND OPERATING INCOME (LOSS)
1. Information by Product Segment
(In millions of yen)
FY'03 April 1, 2002 - March 31, 2003 FY'02 April 1,2001 - March 31, 2002 (A)/(B)
Product Segment Sales (A) %of total Operating Sales (B) %of total Operating %
profit profit (Loss)
(Loss)
Energy and
Electric Systems 861,120 21.5 59,406 920,667 22.8 46,580 94
Industrial
Automation Systems 639,422 16.0 57,969 600,589 14.8 33,165 106
Information and
Communication
Systems 686,432 17.2 (27,273) 762,586 18.8 (90,246) 90
Electronic Devices 460,469 11.5 (53,078) 470,225 11.6 (80,560) 98
Home Appliances 789,149 19.7 36,195 726,151 17.9 37,170 109
Others 566,199 14.1 11,080 569,799 14.1 8,563 99
Sub Total 4,002,791 100.0 84,299 4,050,017 100.0 (45,328) 99
Eliminations and
other (363,720) - (21,159) (401,031) - (22,699) -
Total 3,639,071 - 63,140 3,648,986 - (68,027) 100
Fiscal 2003: April 1, 2002 - March 31, 2003
*Note: Intersegment sales are included in the above chart.
2. Information by Location Segment
(In millions of yen)
FY'03 FY'02
Sales (A) Operating profit Sales (B) Operating profit (A)/(B)
(Loss) (Loss) %
Japan 3,168,639 42,559 3,232.688 (36,980) 98
North America 301,034 3,628 327,648 (18,086) 92
Asia (excluding Japan) 384,891 23,189 305,957 17,544 126
Europe 206,946 (9,921) 232,260 (46,852) 89
Others 15,268 471 13,625 364 112
Total 4,076,778 59,926 4,112,178 (84,010) 99
Eliminations (437,707) 3,214 (463,192) 15,983 -
Total 3,639,071 63,140 3,648,986 (68,027) 100
Fiscal 2003: April 1, 2002 - March 31, 2003
*Note: Intersegment sales are included in the above chart.
3. Overseas Sales
(In millions of yen)
FY'03 FY'02
Sales (A) % of total Sales (B) % of total (A)/(B)
net sales net sales %
North America 361,774 9.9 324,259 8.9 112
Asia (excluding Japan) 406,316 11.2 342,313 9.4 119
Europe 200,049 5.5 218,996 6.0 91
Others 84,476 2.3 73,063 2.0 116
Total overseas sales 1,052,615 28.9 958,631 26.3 110
Fiscal 2003: April 1, 2002 - March 31, 2003
About Mitsubishi Electric Corporation
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: 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. The company has operations in 35
countries and recorded consolidated group sales of 3,639 billion yen (US$30.3
billion*) in the year ended March 31,2003.
For more information about Mitsubishi Electric, visit
http://global.mitsubishielectric.com
*At an exchange rate of 120 yen to the US dollar, the rate given by the Tokyo
Foreign Exchange Market on March 31,2003.
Cautionary Statement
The expectation of operating results herein and any associated statement to be
made with respect to 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. While the statements herein are based on certain
assumptions and premises that 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) Any change in operating
circumstances in any of the markets, in which the Company conducts its business
operation inter alia Japan, the USA and Europe: such change shall include but
not limited to changes in economic situation, political regime, legal system and
legislation, relevant laws and regulations, administrative policies and
practices by any competent authorities, taxation in any of such markets. (2)
Foreign exchange fluctuations, in particular, the rate of Japanese yen against
US Dollar. (3) Relative disproportion between demand and supply of any products
that may affect price and volume, which could be highly intrusive in such
fields like information, telecommunication, electronic devices and home
appliances, without limitation thereto. (4) Shortage of any devices, components
and/or parts necessary for manufacturing operation and difficulties in material
procurement arising out of such shortage, which could even lead to substantial
disconformity with the operating results as expected herein. Also this factor
could be highly intrusive in such fields as information, telecommunication,
electronic devices and home appliances, without limitation thereto. (5) Any
change in technical and technological trends that may be relevant to businesses
of the Company, including but not limited to IT-based or IT-related fields. (6)
Any patent and its licensing that may be granted from time to time and may
affect businesses of the Company. (7) Any development of products incorporating
new technological innovation and the time of their introduction in the
marketplace. (8) Any business alliances of any nature whatsoever, including but
not limited to joint ventures, business transfers, mergers, acquisitions,
capital contributions, technical licensing or co-development. (9) Any change in
fund raising or procurement, inter alia in the Japanese financial market. (10)
Any fluctuation in stock quotations at any relevant markets including securities
exchanges and over-the counter stock markets, inter alia in Japan.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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