Mitsubishi Electric Announces Consolidated Financial Results for the First Quarter of Fiscal 2010

TOKYO--(Business Wire)--
Mitsubishi Electric Corporation (President and CEO: Setsuhiro Shimomura)
announced today its financial results for the first quarter ending June 30,
2009, of the current fiscal year ending March 31, 2010 (fiscal 2010).

Consolidated Financial Results
Net sales: 699.4 billion yen (20% decrease from the same quarter last year)
Operating income: 7.3 billion yen (89% decrease from the same quarter last year)
Income before income taxes: 0.9 billion yen (99% decrease from the same quarter last year)
Net income (loss) attributable to (8.2 billion yen) -
Mitsubishi Electric Corp.:

Management conditions during the first quarter of fiscal 2010 have experienced
ongoing severity due to stagnation in capital expenditures and consumer
spending, etc., despite a slightly slower pace in the decline of the global
economy stemming from various countries` stimulus packages and progress in
inventory reductions, etc.

Under these circumstances, first quarter consolidated net sales dropped by 20%
compared to the same period of the previous fiscal year to 699.4 billion yen,
due to decreased revenue from the Industrial Automation Systems, Electronic
Devices and Home Appliances segments, and other factors.

Consolidated operating income decreased by 89% from the same period of the
previous fiscal year to 7.3 billion yen due to - among other factors - lower
profits from the Industrial Automation Systems, Electronic Devices and Home
Appliances segments.

Net income attributable to Mitsubishi Electric Corp. was minus 8.2 billion yen
due to reported equity in losses of affiliated companies, etc.

Consolidated Financial Results by Business Segment

Energy and Electric Systems
Total sales: 206.9 billion yen (6% increase from the same quarter last year)
Operating income: 12.1 billion yen (0.7 billion yen decrease from the same quarter last year)

The social infrastructure systems business saw increases in both sales and
orders compared to the same period of the previous fiscal year owing to
increases in the overseas transportation business and the power generation
business in Japan and overseas.

The building systems business experienced decreases in both orders and sales
compared to the same period of the previous fiscal year, due to decreases in
global demand for elevators and escalators, as well as postponements and
cancellations of large projects, etc.

As a result, total sales for this segment increased by 6% from the same period
of the previous fiscal year. Operating income slightly decreased compared to the
same period of the previous fiscal year by 0.7 billion yen due to a shift in
sales components, etc.

Industrial Automation Systems
Total sales: 143.8 billion yen (43% decrease from the same quarter last year)
Operating income (loss): (2.5 billion yen) (39.0 billion yen decline from the same quarter last year)

The factory automation systems business saw decreases in both orders and sales
from the same period of the previous fiscal year due to stagnation in demand for
industrial machinery in the global market, for flat panel display-related
investments in Korea and Taiwan, and for domestic surface mounting
systems-related investments.

The automotive equipment business saw decreases in both orders and sales from
the previous fiscal year due to stagnation in global demand except for certain
regions.

As a result, total sales for this segment decreased by 43% from the same period
of the previous fiscal year. Operating income fell by 39.0 billion yen from the
previous fiscal year due to a decrease in sales, etc.

Information and Communication Systems
Total sales: 107.7 billion yen (3% increase from the same quarter last year)
Operating income : 1.9 billion yen (0.6 billion yen increase from the same quarter last year)

The telecommunications equipment business saw decreases in both orders and sales
compared to the same period of the previous fiscal year, due to the decrease in
mobile handsets, whose sales had been reported until the same period of the
previous fiscal year.

The information systems and service business saw a decrease in sales compared to
the same period of the previous fiscal year due to a decrease in the system
integration business, etc, reflecting the decrease in demand for IT related
investments.

The electronic system business saw increases in both orders and sales compared
to the same period of the previous fiscal year due to an increase in the
electronics business.

As a result, total sales for this segment showed an increase of 3% compared to
the same period of the previous fiscal year. Operating income showed an increase
compared to the same period of the previous fiscal year of 0.6 billion yen,
owing to increased sales in the electronics business, etc.

Electronic Devices
Total sales: 29.0 billion yen (41% decrease from the same quarter last year)
Operating income (loss): (2.5 billion yen) (4.1 billion yen decline from the same quarter last year)

The semiconductor business saw decreases in both orders and sales from the same
period of the previous fiscal year due to lower sales of power modules for
industrial use, laser diodes for DVD recorders and power amplifiers for domestic
mobile handsets, etc.

The liquid crystal business saw decreases in both orders and sales from the same
period of the previous fiscal year due to a decrease in products for industrial
use.

As a result, total sales for the segment decreased by 41% compared to the same
period of the previous fiscal year. Operating income became worse by 4.1 billion
yen compared to the same period of the previous fiscal year due to a decrease in
sales, etc.

Home Appliances
Total sales: 190.7 billion yen (25% decrease from the same quarter last year)
Operating income: 8.0 billion yen (13.4 billion yen decrease from the same quarter last year)

The home appliance business saw a decrease in sales of 25% compared to the same
period of the previous fiscal year due to sales decreases in domestic and
overseas air conditioners and photovoltaic systems for the overseas market,
despite sales increases in some home appliances, due to the uplifting effects of
the "eco-points" incentives, etc.

Operating income showed a decrease from the same period of the previous fiscal
year of 13.4 billion yen due to a decrease in sales, etc.

Others
Total sales: 117.4 billion yen (17% decrease from the same quarter last year)
Operating income (loss): (1.2 billion yen) (2.3 billion yen decline from the same quarter last year)

Sales decreased by 17% compared to the same period of the previous fiscal year
mainly in affiliated companies involved in material procurement and logistics,
etc. Operating income showed a decrease from the same period of the previous
fiscal year by 2.3 billion yen due to decreases in sales, etc.

Financial Standing

The company`s total assets for the fiscal quarter decreased from the end of the
previous fiscal year by 191.6 billion yen to 3,142.5 billion yen. This was
mainly due to cash and cash equivalents showing a decrease of 54.2 billion yen
and trade receivables decreasing by 143.8 billion yen as a result of collection,
etc.

The balance of outstanding debt and corporate bonds fell by 75.3 billion yen
from the balance as of the end of the previous fiscal year to 602.4 billion yen,
while the ratio of interest bearing debt to total assets was 19.2% (a 1.1-point
decrease compared to the end of the previous fiscal year). Trade payables
decreased by 91.4 billion yen, and retirement and severance benefits decreased
by 56.2 billion yen due to increases in pension assets resulting from higher
stock prices, etc.

Total equity increased by 44.7 billion yen compared to the previous fiscal year
to 946.7 billion yen. Shareholders` equity ratio showed a 2.9-point decrease
compared to the end of the previous fiscal year to 28.4%. Retained earnings
decreased due to a total consolidated net loss attributable to Mitsubishi
Electric Corporation of 8.2 billion yen, while accumulated other comprehensive
income increased by 51.7 billion yen amidst higher stock prices, etc.

Operating cash flow for this quarter decreased by 47.9 billion yen compared to
the previous fiscal year to 48.8 billion yen (cash in). Investment cash flow
decreased by 32.1 billion yen compared to the previous fiscal year to 28.3
billion yen (cash out), resulting from a decrease in short-term investments,
etc. As a result, free cash flow totaled 20.5 billion yen (cash in). Financial
cash flow was 79.7 billion yen (cash out) due to repayment of loans, etc.

Forecast for Fiscal 2010

The consolidated earnings forecast for the first half of fiscal 2010, ending
September 30, 2009, and for fiscal 2010, ending March 31, 2010, are unchanged
from the yearly results announcement on April 30, 2009 as stated below.

First Half of Fiscal 2010 Consolidated Earnings Forecast
Net sales: 1,600.0 billion yen (16% decrease from the same period last year)
Operating income: 0.0 billion yen -
Income before income taxes: (35.0 billion yen) -
Net income (loss) attributable to Mitsubishi Electric Corp.: (35.0 billion yen) -

Fiscal 2010 Consolidated Earnings Forecast
Net sales: 3,430.0 billion yen (6% decrease from fiscal 2009)
Operating income: 60.0 billion yen (57% decrease from fiscal 2009)
Income before income taxes: 5.0 billion yen (89% decrease from fiscal 2009)
Net income (loss) attributable to Mitsubishi Electric Corp.: (20.0 billion yen) -

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. 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 procurement
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 matters
We may appropriate funds for losses or increase allowances to respond to regulation trends or outbreaks of issues related to the environment. This may impact manufacturing and all corporate activities of the Mitsubishi Electric Group.
(8) Quality of products and services
We may appropriate funds for losses from defective services or products, 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 or other factors.

Notes

1. Change of status in material affiliates in this quarterly period: none

2. Abbreviated accounting procedures and procedures inherent to compiling
quarterly consolidated financial statements: not applicable

3. Changes in principles and procedures of accounting methods for compiling
quarterly consolidated financial statements, or in presentation methods, etc.:

(1) From this fiscal quarter, the "Noncontrolling Interests in Consolidated
Financial Statements - an amendment of ARB No.51" under the FASB issued SFAS No.
160 has been applied. In the consolidated balance sheet, minority interests,
conventionally shown between the Liabilities and the Equity section, is included
as noncontrolling interest in the Total equity section. In the consolidated
profit and loss statement, "Net income" is renamed as "Net income attributable
to Mitsubishi Electric Corp."

Accordingly, in the profit and loss statement, income before income taxes
includes equity in earnings (losses) of affiliated companies, while excluding
net income attributable to the noncontrolling interest. Consequently, figures
for FY2009 have been reclassified.

(2) From this fiscal quarter, the "Disclosures about Segments of an Enterprise
and Related Information" under the FASB issued SFAS No. 131 has been applied.
Also considering the disclosure rules for consolidated financial statements, the
company has shown its segment information by location.

From the previous fiscal year, loss on impairment of long-lived assets is
reflected in "operating income," to better evaluate the financial results by
each segment. Consequently, figures have been reclassified for the years before.

About Mitsubishi Electric

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 (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. The company recorded consolidated group
sales of 3,665.1 billion yen (US$ 37.4 billion*) in the fiscal year ended March
31, 2009. For more information visit http://global.mitsubishielectric.com

*At an exchange rate of 98 yen to the US dollar, the rate given by the Tokyo
Foreign Exchange Market on March 31, 2009

Mitsubishi Electric Corporation
Investor Relations Inquiries:
Tel: +81-3-3218-2391
Investor Relations Group
Corporate Finance Division
Cad.Irg@rk.MitsubishiElectric.co.jp
or
Media Contact:
Yurika Fujimoto, +81-3-3218-3380
Public Relations Division
prd.gnews@nk.MitsubishiElectric.co.jp
http://global.mitsubishielectric.com/news/

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