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

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

Business Wire

TOKYO -- December 21, 2012

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

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

Contact:

Mitsubishi Electric Corporation
Investor Relations Inquiries:
Investor Relations Group
Corporate Finance Division
Tel: +81-3-3218-2391
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://www.MitsubishiElectric.com/news/