REG - Mitsubishi Elect. - 3rd Quarter Results <Origin Href="QuoteRef">6503.T</Origin>

Mitsubishi ElectricAnnouncement

02/02/2018 09:00

RNS Number : 7582D
Mitsubishi Electric Corporation
02 February 2018
FOR IMMEDIATE RELEASE
No.3167


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Media Inquiries


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Public Relations Division
Mitsubishi Electric Corporation
Mitsubishi Electric Corporation
Cad.Irg@rk.MitsubishiElectric.co.jp
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Mitsubishi Electric Announces Consolidated Financial Results for the First 9 Months and Third Quarter of Fiscal 2018
TOKYO, February 2, 2018 - Mitsubishi Electric Corporation (TOKYO: 6503) announced today its consolidated financial results for the first 9 months and third quarter, ended December 31, 2017, of the current fiscal year ending March 31, 2018 (fiscal 2018).
1. Consolidated First 9 Months Results (April 1, 2017 - December 31, 2017)
Net sales:
3,115.0 
billion yen
(6% increase from the same period last year)
Operating income:
232.4 
billion yen
(32% increase from the same period last year)
Income before income taxes:
277.2 
billion yen
(41% increase from the same period last year)
Net income attributable to Mitsubishi Electric Corp.:
193.1 
billion yen
(43% increase from the same period last year)
In the first 9 months of fiscal 2018, from April through December 2017, the global economy saw a stable status in China, a buoyant expansion in the U.S. and gradual trends of recovery in Japan and Europe. In addition, the yen weakened against the U.S. dollar and the euro in and after May compared to the same period of the previous fiscal year, but became stronger against the U.S. dollar after the latter half of November.
Under these circumstances, consolidated net sales for the first 9 months of fiscal 2018 increased by 6% compared to the same period of the previous fiscal year to 3,115.0 billion yen due primarily to increased sales in the Energy and Electric Systems, Industrial Automation Systems, Electronic Devices and Home Appliances segments. 
Consolidated operating income increased by 32% compared to the same period of the previous fiscal year to 232.4 billion yen, due to increased profits in the Energy and Electric Systems, Industrial Automation Systems, Information and Communication Systems and Electronic Devices segments. 
Income before income taxes increased by 41% compared to the same period of the previous fiscal year to 277.2 billion yen, due primarily to an increased operating income, recording a gain from sales of investment securities in Renesas Electronics Corporation, and an improvement of exchange gains and losses. 
Net income attributable to Mitsubishi Electric Corporation increased by 43% compared to the same period of the previous fiscal year to 193.1 billion yen.
Consolidated Financial Results by Business Segment (First 9 months, Fiscal 2018)
Energy and Electric Systems
Total sales:
805.3 
billion yen
(3% increase from the same period last year)
Operating income:
26.6 
billion yen
(12.8 billion yen increase from the same period last year)
The social infrastructure systems business saw a decrease in orders from the same period of the previous fiscal year due primarily to decreases in orders of the power systems business outside Japan as well as the transportation systems business in Japan, while sales remained substantially unchanged compared to the same period of the previous fiscal year.
The building systems business remained substantially unchanged in orders, while sales increased compared to the same period of the previous fiscal year due primarily to growth in the renewal business in Japan and the new installation of elevators and escalators outside Japan.
As a result, total sales for this segment increased by 3% from the same period of the previous fiscal year. Operating income increased by 12.8 billion yen from the same period of the previous fiscal year due primarily to a shift in project portfolios.
Industrial Automation Systems
Total sales:
1,070.5 
billion yen
(12% increase from the same period last year)
Operating income: 
147.6 
billion yen
(45.0 billion yen increase from the same period last year)
The factory automation systems business saw increases in both orders and sales from the same period of the previous fiscal year due primarily to growth in capital expenditures in the fields of organic light emitting diodes (OLED) mainly in Korea, smartphones and electric cars in China as well as buoyancy in exports by machinery manufacturers in Japan.
The automotive equipment business saw increases in both orders and sales from the same period of the previous fiscal year, due primarily to increases in sales volume of Japanese car manufacturers in China, as well as the weaker yen, despite decreased car sales in North America.
 As a result, total sales for this segment increased by 12% from the same period of the previous fiscal year. Operating income increased by 45.0 billion yen from the same period of the previous fiscal year due primarily to an increase in sales.
Information and Communication Systems
Total sales:
274.7 
billion yen
(4% decrease from the same period last year)
Operating income:
6.2
billion yen
(1.7 billion yen increase from the same period last year)
The telecommunications equipment business saw decreases in both orders and sales compared to the same period of the previous fiscal year due primarily to decreased demand in communications infrastructure equipment.
The information systems and service business saw an increase in sales compared to the same period of the previous fiscal year, mainly owing to an increase in the system integrations business.
The electronic systems business saw an increase in orders compared to the same period of the previous fiscal year due to an increase in large-scale projects in the defense systems business, while sales experienced a decrease compared to the same period of the previous fiscal year due primarily to a shift in large-scale projects in the defense systems and the space systems business.
As a result, total sales for this segment decreased by 4% from the same period of the previous fiscal year. Operating income increased by 1.7 billion yen from the same period of the previous fiscal year due primarily to a shift in project portfolios.
Electronic Devices
Total sales:
149.8 
billion yen
(10% increase from the same period last year)
Operating income: 
12.0 
billion yen
(6.8 billion yen increase from the same period last year)
The electronic devices business saw an increase in orders from the same period of the previous fiscal year due to increases in demand for power modules used in consumer and industrial applications, and total sales increased by 10% compared to the same period of the previous fiscal year, despite a decrease in demand for optical communication devices.
Operating income increased by 6.8 billion yen compared to the same period of the previous fiscal year due primarily to an increase in sales.
Home Appliances
Total sales:
779.1 
billion yen
(4% increase from the same period last year)
Operating income: 
49.1 
billion yen
(8.5 billion yen decrease from the same period last year)
The home appliances business saw an increase in sales of 4% from the same period of the previous fiscal year due to an increase in sales of air conditioners for Europe, China and the U.S., in addition to the weaker yen.
 Operating income decreased by 8.5 billion yen compared to the same period of the previous fiscal year due primarily to increases in material prices and sales expenses.
Others
Total sales:
556.6 
billion yen
(8% increase from the same period last year)
Operating income: 
14.9 
billion yen
(0.3 billion yen decrease from the same period last year)
Sales increased by 8% compared to the same period of the previous fiscal year due primarily to an increase in sales at affiliated companies involved in materials procurement.
Operating income decreased by 0.3 billion yen from the same period of the previous fiscal year due primarily toa shift in project portfolios.
2. Consolidated Third-quarter Results (October 1, 2017 - December 31, 2017)
Net sales:
1,038.6 
billion yen
(7% increase from the same period last year)
Operating income:
83.1 
billion yen
(54% increase from the same period last year)
Income before income taxes:
91.9 
billion yen
(27% increase from the same period last year)
Net income attributable to Mitsubishi Electric Corp.:
61.9 
billion yen
(32% increase from the same period last year)
Consolidated net sales for this quarter, from October through December 2017, was 1,038.6 billion yen, a 7% increase from the same period of the previous fiscal year, due to increased sales in all segments. 
Consolidated operating income was 83.1 billion yen, an increase of 54% from the same period of the previous fiscal year, with increased profits in the Energy and Electric Systems, Industrial Automation Systems, Information and Communication Systems, Electronic Devices and Home appliances segments. 
Income before income taxes increased by 27% compared to the same period of the previous fiscal year to 91.9 billion yen due primarily to an increased operating income despite a decrease of gain on foreign exchange in the same period of the previous fiscal year. 
Net income attributable to Mitsubishi Electric Corporation increased by 32% compared to the same period of the previous fiscal year to 61.9 billion yen.
Consolidated Financial Results by Business Segment (Third Quarter, Fiscal 2018)
Energy and Electric Systems
Total sales:
277.4 
billion yen
(7% increase from the same period last year)
Operating income:
16.5 
billion yen
(11.9 billion yen increase from the same period last year)
The social infrastructure systems business remained substantially unchanged in orders, while sales increased compared to the same period of the previous fiscal year due primarily to growth in the power systems business, the public utility systems business, and the transportation systems in Japan.
The building systems business remained substantially unchanged in orders, while sales increased compared to the same period of the previous fiscal year due primarily to growth in the renewal business in Japan and the new installation of elevators and escalators outside Japan. 
As a result, total sales for this segment increased by 7% from the same period of the previous fiscal year. Operating income increased by 11.9 billion yen from the same period of the previous fiscal year due primarily to an increase in sales.
Industrial Automation Systems
Total sales:
366.8 
billion yen
(10% increase from the same period last year)
Operating income: 
52.7 
billion yen
(12.2 billion yen increase from the same period last year)
The factory automation systems business saw increases in both orders and sales from the same period of the previous fiscal year due primarily to growth in capital expenditures in the fields of smartphones and electric cars in China, and buoyancy in exports by machinery manufacturers in Japan.
The automotive equipment business saw increases in both orders and sales from the same period of the previous fiscal year due primarily to increases in sales volume of Japanese car manufacturers in China as well as the weaker yen, despite decreased car sales in North America.
As a result, total sales for this segment increased by 10% from the same period of the previous fiscal year. Operating income increased by 12.2 billion yen from the same period of the previous fiscal year due primarily to an increase in sales.
Information and Communication Systems
Total sales:
89.7 
billion yen
(3% increase from the same period last year)
Operating income:
3.4
billion yen
(2.8 billion yen increase from the same period last year)
The telecommunications equipment business saw decreases in both orders and sales compared to the same period of the previous fiscal year due primarily to decreased demand in communications infrastructure equipment.
The information systems and service business saw an increase in sales compared to the same period of the previous fiscal year, mainly owing to an increase in the system integrations business.
The electronic systems business saw increases in both orders and sales from the same period of the previous fiscal year due primarily to increases in orders for large-scale projects in the defense systems business as well as increases in sales by progress in orders already received for projects in the space systems business.
As a result, total sales for this segment increased by 3% from the same period of the previous fiscal year. Operating income increased by 2.8 billion yen from the same period of the previous fiscal year due primarily to a shift in project portfolios.
Electronic Devices
Total sales:
50.3 
billion yen
(2% increase from the same period last year)
Operating income: 
5.0 
billion yen
(1.6 billion yen increase from the same period last year)
The electronic devices business saw an increase in orders from the same period of the previous fiscal year due to increases in demand for power modules used in industrial and automotive applications, and total sales increased by 2% compared to the same period of the previous fiscal year, despite a decrease in demand for optical communication devices.
Operating income increased by 1.6 billion yen compared to the same period of the previous fiscal year due primarily to an increase in sales.
Home Appliances
Total sales:
239.9 
billion yen
(6% increase from the same period last year)
Operating income: 
10.6 
billion yen
(1.7 billion yen increase from the same period last year)
The home appliances business saw an increase in sales of 6% from the same period of the previous fiscal year due to an increase in sales of air conditioners for Europe, China and the U.S., in addition to the weaker yen.
 Operating income increased by 1.7 billion yen compared to the same period of the previous fiscal year due primarily to an increases in sales.
Others
Total sales:
194.2 
billion yen
(9% increase from the same period last year)
Operating income: 
5.1 
billion yen
(0.7 billion yen decrease from the same period last year)
Sales increased by 9% compared to the same period of the previous fiscal year due primarily to an increase in sales at affiliated companies involved in materials procurement.
Operating income decreased by 0.7 billion yen from the same period of the previous fiscal year due primarily toa shift in project portfolios.
Financial Standing
An analysis on the status of assets, liabilities and equity on a consolidated basis
Total assets as of the end of this fiscal quarter increased from the end of the previous fiscal year by 11.7 billion yen to 4,184.0 billion yen. The change in the balance of total assets is mainly attributable to increases in the balance of inventories by 199.2 billion yen as a result of work-in-process as recorded in commensurate with progress in job orders under pertinent contracts, while trade receivables decreased by 135.8 billion yen primarily as a result of credit collection. 
Total liabilities decreased from the end of the previous fiscal year by 208.4 billion yen to 1,823.1 billion yen. The outstanding balances of debts and corporate bonds decreased by 33.4 billion yen from the end of the previous fiscal year to 318.7 billion yen, resulting in a decline in the ratio of interest bearing debt to total assets to 7.6%, representing a 0.8 point decrease compared to the end of the previous fiscal year. The outstanding balance of trade payables decreased by 127.2 billion yen, and retirement and severance benefits decreased by 21.0 billion yen, mainly resulting from an increase in pension assets following a rise in stock prices.
Mitsubishi Electric Corporation shareholders' equity increased by 214.7 billion yen compared to the end of the previous fiscal year to 2,254.3 billion yen. The shareholders' equity ratio was recorded at 53.9%, representing a 5.0 point increase compared to the end of the previous fiscal year. These changes referred to above primarily result from recording a net income attributable to Mitsubishi Electric Corporation of 193.1 billion yen and accumulated other comprehensive income by 90.9 billion yen caused by such factors as the weaker yen and rising stock prices, despite a dividend payment of 68.6 billion yen.
An analysis on the status of cash flow on a consolidated basis
Cash flows from operating activities decreased by 59.9 billion yen compared to the same period of the previous fiscal year to 111.5 billion yen (cash in) due primarily to increases of inventories. Cash flows from investing activities increased by 29.6 billion yen compared to the same period of the previous fiscal year to 120.5 billion yen (cash out) due to increases in proceeds from the purchases of tangible fixed assets and other factors. As a result, free cash flow was 8.9 billion yen (cash out). Cash flows from financing activities were 116.3 billion yen (cash out) mainly due to dividend payment.
Forecast for Fiscal 2018 (year ending March 31, 2018)
As a result of the weaker yen as well as the growth expected in the Industrial Automation Systems segment in which it sees an increase in demand for capital expenditures mainly in Asia, the company's consolidated earnings forecast for fiscal 2018, ending March 31, 2018, has been revised from the announcement on October 31, 2017 as stated below.
Consolidated Earnings Forecast for Fiscal 2018
Consolidated
Previous forecast (announced Oct. 31)
Current forecast
Net sales:
4,390.0 billion yen
4,420.0 billion yen
(4% increase from fiscal 2017)
Operating income:
315.0 billion yen
325.0 billion yen
(20% increase from fiscal 2017)
Income before income taxes:
350.0 billion yen
370.0 billion yen
(25% increase from fiscal 2017)
Net income attributable to
Mitsubishi Electric Corp.:
250.0 billion yen
265.0 billion yen
(26% increase from fiscal 2017)
The exchange rate in the fourth quarter of fiscal 2018 remains unchanged from the previous announcement at 105 yen to the U.S. dollar, while the exchange rate to the euro has been revised to 125 yen, five yen weaker than the previous rate.
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 at the end.


Consolidated Financial Results Summary
1. Consolidated First 9 Months Results
 (In billions of yen except where noted)

FY '17 9 months (A)
(Apr. 1, 2016 - Dec. 31, 2016)
FY '18 9 months (B)
(Apr. 1, 2017 - Dec. 31, 2017)

B - A
B/A
(%)
Net sales
2,947.1
3,115.0
167.8
106
Operating income
175.5
232.4
56.8
132
Income before income taxes
196.1
277.2
81.0
141
Net income attributable to Mitsubishi Electric Corp.
135.3
193.1
57.7
143
Basic net income per share attributable to Mitsubishi Electric Corp.
63.06 yen
90.00 yen
26.94 yen
143
2. Consolidated Third-quarter Results
 (In billions of yen except where noted)

FY '17 Q3 (A)
(Oct. 1, 2016 -
Dec. 31, 2016)
FY '18 Q3 (B)
(Oct. 1, 2017 - Dec. 31, 2017)

B - A
B/A
(%)
Net sales
974.7
1,038.6
63.9
107
Operating income
53.8
83.1
29.2
154
Income before income taxes
72.4
91.9
19.5
127
Net income attributable to Mitsubishi Electric Corp.
46.9
61.9
14.9
132
Basic net income per share attributable to Mitsubishi Electric Corp.
21.90 yen
28.89 yen
6.99 yen
132
Notes: 
1) Consolidated financial charts made in accordance with U.S. GAAP.
2) The Company has 204 consolidated subsidiaries.


Consolidated Profit and Loss Statement (First 9 Months, Fiscal 2018)
(In millions of yen)

FY '17 9 months
(Apr. 1, 2016 - 
Dec. 31, 2016) 
FY '18 9 months
(Apr. 1, 2017 - 
Dec. 31, 2017) 

B - A
B/A (%)
(A)
% of total
(B)
% of total
Net sales
2,947,113
100.0
3,115,012
100.0
167,899
106
Cost of sales
2,042,322
69.3
2,112,607
67.8
70,285
103
Selling, general and
administrative expenses
727,270
24.6
768,464
24.7
41,194
106
Loss on impairment of 
long-lived assets
1,944
0.1
1,532
0.0
(412)
79
Operating income 
175,577
6.0
232,409
7.5
56,832
132
Other income
46,646
1.6
51,587
1.6
4,941
111
Interest and dividends
6,330
0.2
7,247
0.2
917
114
Equity in earnings of affiliated companies
14,351
0.5
15,696
0.5
1,345
109
Other
25,965
0.9
28,644
0.9
2,679
110
Other expenses
26,028
0.9
6,769
0.2
(19,259)
26
Interest
2,154
0.1
2,044
0.1
(110)
95
Other
23,874
0.8
4,725
0.1
(19,149)
20
Income before income taxes
196,195
6.7
277,227
8.9
81,032
141
Income taxes
51,695
1.8
75,883
2.4
24,188
147
Net income
144,500
4.9
201,344
6.5
56,844
139
Net income attributable to 
the noncontrolling interests
9,161
0.3
8,226
0.3
(935)
90
Net income attributable to Mitsubishi Electric Corp.
135,339
4.6
193,118
6.2
57,779
143
Consolidated Comprehensive Income Statement (First 9 Months, Fiscal 2018)
(In millions of yen)


FY '17
9 months (A)
(Apr. 1, 2016 - Dec. 31, 2016)
FY '18
9 months (B)
(Apr. 1, 2017 - Dec. 31, 2017)
B - A
Net income
144,500
201,344
56,844
Other comprehensive income (loss), net of tax




Foreign currency translation adjustments
(26,781)
43,830
70,611

Pension liability adjustments
23,386
40,693
17,307

Unrealized gains on securities
26,519
10,379
(16,140)

Unrealized gains (losses) on derivative instruments
182
(65)
(247)
Total
23,306
94,837
71,531
Comprehensive income 
167,806
296,181
128,375
Comprehensive income attributable to 
the noncontrolling interests
7,248
12,074
4,826
Comprehensive income attributable to 
Mitsubishi Electric Corp.
160,558
284,107
123,549


Consolidated Profit and Loss Statement (Third Quarter, Fiscal 2018)
(In millions of yen)

FY '17 Q3
(Oct. 1, 2016 - 
Dec. 31, 2016) 
FY '18 Q3
(Oct. 1, 2017 - 
Dec. 31, 2017) 

B - A
B/A (%)
(A)
% of total
(B)
% of total
Net sales
974,759
100.0
1,038,670
100.0
63,911
107
Cost of sales
683,967
70.2
700,366
67.4
16,399
102
Selling, general and
administrative expenses
236,962
24.3
255,191
24.6
18,229
108
Operating income 
53,830
5.5
83,113
8.0
29,283
154
Other income
19,498
2.0
9,899
1.0
(9,599)
51
Interest and dividends
2,068
0.2
2,362
0.2
294
114
Equity in earnings of affiliated companies
4,828
0.5
5,729
0.6
901
119
Other
12,602
1.3
1,808
0.2
(10,794)
14
Other expenses
859
0.1
1,028
0.1
169
120
Interest
592
0.1
605
0.1
13
102
Other
267
0.0
423
0.0
156
158
Income before income taxes
72,469
7.4
91,984
8.9
19,515
127
Income taxes
22,537
2.3
27,354
2.7
4,817
121
Net income
49,932
5.1
64,630
6.2
14,698
129
Net income attributable to 
the noncontrolling interests
2,935
0.3
2,636
0.2
(299)
90
Net income attributable to Mitsubishi Electric Corp.
46,997
4.8
61,994
6.0
14,997
132
Consolidated Comprehensive Income Statement(Third Quarter, Fiscal 2018)
(In millions of yen)


FY '17 Q3 (A)
(Oct. 1, 2016 - 
Dec. 31, 2016)
FY '18 Q3 (B)
(Oct. 1, 2017 - 
Dec. 31, 2017)
B - A
Net income
49,932
64,630
14,698
Other comprehensive income (loss), net of tax




Foreign currency translation adjustments
66,979
17,165
(49,814)

Pension liability adjustments
28,162
22,824
(5,338)

Unrealized gains on securities
46,710
13,675
(33,035)

Unrealized gains on derivative instruments
224
17
(207)
Total
142,075
53,681
(88,394)
Comprehensive income
192,007
118,311
(73,696)
Comprehensive income attributable to 
the noncontrolling interests
9,844
4,449
(5,395)
Comprehensive income attributable to 
Mitsubishi Electric Corp.
182,163
113,862
(68,301)


Consolidated Balance Sheet
(In millions of yen)

FY '17 (A)
(ended Mar. 31, 2017)
FY ' 18
9 months (B) 
(ended Dec. 31, 2017)
B - A
(Assets)
Current assets
2,500,685
2,490,034
(10,651)
Cash and cash equivalents
662,469
551,670
(110,799)
Trade receivables
1,037,201
902,389
(134,812)
Inventories
643,040
842,281
199,241
Prepaid expenses and other current assets
157,975
193,694
35,719
Long-term trade receivables
2,815
1,798
(1,017)
Investments
618,935
671,641
52,706
Net property, plant and equipment
732,611
757,869
25,258
Other assets
317,224
262,658
(54,566)
Total assets
4,172,270
4,184,000
11,730
(Liabilities)
Current liabilities
1,525,761
1,368,433
(157,328)
Bank loans and current portion of long-term debt
124,368
110,782
(13,586)
Trade payables
780,202
652,998
(127,204)
Other current liabilities
621,191
604,653
(16,538)
Long-term debt
227,756
207,935
(19,821)
Retirement and severance benefits
194,990
173,911
(21,079)
Other fixed liabilities
83,055
72,824
(10,231)
Total liabilities
2,031,562
1,823,103
(208,459)
(Equity)
Mitsubishi Electric Corp. shareholders' equity
2,039,627
2,254,351
214,724
Common stock
175,820
175,820
-
Capital surplus
212,530
212,543
13
Retained earnings
1,654,557
1,778,978
124,421
Accumulated other comprehensive income (loss)
(2,052)
88,937
90,989
Treasury stock at cost
(1,228)
(1,927)
(699)
Noncontrolling interests
101,081
106,546
5,465
Total equity
2,140,708
2,360,897
220,189
Total liabilities and equity
4,172,270
4,184,000
11,730
Balance of Debt
352,124
318,717
(33,407)
Accumulated other comprehensive income (loss):



Foreign currency translation adjustments
18,535
58,591
40,056
Pension liability adjustments
(156,993)
(116,271)
40,722
Unrealized gains on securities
136,352
146,615
10,263
Unrealized gains on derivative instruments
54
2
(52)


Consolidated Cash Flow Statement
 (In millions of yen)


FY '17 9 months
(Apr. 1, 2016 - Dec. 31, 2016)
(A)
FY '18 9 months
(Apr. 1, 2017 - Dec. 31, 2017)
(B)
B - A
I
Cash flows from operating activities



1
Net income
144,500
201,344
56,844
2
Adjustments to reconcile net income to net cash provided by operating activities




(1) Depreciation of tangible fixed assets and other
101,452
111,271
9,819

(2) Decrease in trade receivables
149,645
152,385
2,740

(3) Decrease (increase) in inventories
(118,535)
(181,672)
(63,137)

(4) Increase (decrease) in trade payables
(60,735)
(117,293)
(56,558)

(5) Other, net
(44,790)
(54,491)
(9,701)

Net cash provided by operating activities
171,537
111,544
(59,993)
II
Cash flows from investing activities



1
Capital expenditure
(114,351)
(135,221)
(20,870)
2
Proceeds from sale of property, plant and equipment
6,194
2,204
(3,990)
3
Purchase of short-term investments and investment securities (net of cash acquired)
(3,906)
(6,701)
(2,795)
4
Proceeds from sale of short-term investments and investment securities (net of cash disposed)
19,181
29,729
10,548
5
Other, net
2,017
(10,524)
(12,541)

Net cash used in investing activities
(90,865)
(120,513)
(29,648)
I+II Free cash flow
80,672
(8,969)
(89,641)
III
Cash flows from financing activities



1
Proceeds from long-term debt
147
180
33
2
Repayment of long-term debt
(33,074)
(36,710)
(3,636)
3
Increase (decrease) in bank loans, net
(652)
(2,998)
(2,346)
4
Dividends paid
(57,963)
(68,696)
(10,733)
5
Purchase of treasury stock
(1,096)
(699)
397
6
Reissuance of treasury stock
0
0
(0)
7
Other, net
(5,154)
(7,419)
(2,265)

Net cash provided by (used in) financing activities
(97,792)
(116,342)
(18,550)
IV
Effect of exchange rate changes on cash and cash equivalents
(2,598)
14,512
17,110
V
Net increase (decrease) in cash and cash equivalents
(19,718)
(110,799)
(91,081)
VI
Cash and cash equivalents at beginning of period
574,170
662,469
88,299
VII
Cash and cash equivalents at end of period
554,452
551,670
(2,782)


Consolidated Segment Information (First 9 Months, Fiscal 2018)
1. Sales and Operating Income by Business Segment
(In millions of yen)
Business Segment
FY '17 9 months
(Apr. 1, 2016 - 
Dec. 31, 2016)
FY '18 9 months
(Apr. 1, 2017 - 
Dec. 31, 2017)
C - A
D - B
C/A
(%)
Sales (A)
Operating income (B)
Sales (C)
Operating income (D)
Energy and Electric Systems
784,744
13,758
805,347
26,639
20,603
12,881
103
Industrial Automation 
Systems
951,988
102,569
1,070,518
147,608
118,530
45,039
112
Information and 
Communication Systems
285,462
4,451
274,789
6,249
(10,673)
1,798
96
Electronic Devices
135,850
5,116
149,860
12,000
14,010
6,884
110
Home Appliances
746,404
57,625
779,163
49,118
32,759
(8,507)
104
Others
514,571
15,297
556,657
14,997
42,086
(300)
108
Subtotal
3,419,019
198,816
3,636,334
256,611
217,315
57,795
106
Eliminations and other
(471,906)
(23,239)
(521,322)
(24,202)
(49,416)
(963)
-
Total
2,947,113
175,577
3,115,012
232,409
167,899
56,832
106
*Note: Inter-segment sales are included in the above chart.
2. Sales and Operating Income by Location
(In millions of yen)
Location
FY '17 9 months
(Apr. 1, 2016 - 
Dec. 31, 2016)
FY '18 9 months
(Apr. 1, 2017 - 
Dec. 31, 2017)
C - A
D - B
C/A
(%)
Sales (A)
Operating income (B)
Sales (C)
Operating income (D)
Japan
2,325,814
86,041
2,427,796
141,524
101,982
55,483
104
North America
302,591
4,809
306,163
8,543
3,572
3,734
101
Asia (excluding Japan)
756,770
69,912
880,208
71,866
123,438
1,954
116
Europe
313,419
11,023
352,851
11,426
39,432
403
113
Others
33,751
1,740
37,908
1,950
4,157
210
112
Subtotal
3,732,345
173,525
4,004,926
235,309
272,581
61,784
107
Eliminations
(785,232)
2,052
(889,914)
(2,900)
(104,682)
(4,952)
-
Total
2,947,113
175,577
3,115,012
232,409
167,899
56,832
106
*Note: Inter-segment sales are included in the above chart.


3. Sales by Location of Customers
(In millions of yen)
Location of Customers
FY '17 9 months
(Apr. 1, 2016 - 
Dec. 31, 2016)
FY '18 9 months
(Apr. 1, 2017 - 
Dec. 31, 2017)
B - A
B/A (%)
Sales (A)
% of total net sales
Sales (B)
% of total net sales

Japan
1,616,573
54.9
1,625,632
52.2
9,059
101

North America
304,670
10.3
306,423
9.8
1,753
101
Asia 
(excluding Japan)
680,074
23.1
803,635
25.8
123,561
118
Europe
286,728
9.7
319,113
10.3
32,385
111
Others
59,068
2.0
60,209
1.9
1,141
102
Total overseas sales
1,330,540
45.1
1,489,380
47.8
158,840
112
Consolidated total
2,947,113
100.0
3,115,012
100.0
167,899
106


Consolidated Segment Information (Third Quarter, Fiscal 2018)
1. Sales and Operating Income by Business Segment
(In millions of yen)
Business Segment
FY '17 Q3
(Oct. 1, 2016 - 
Dec. 31, 2016)
FY '18 Q3
(Oct. 1, 2017 - 
Dec. 31, 2017)
C - A
D - B
C/A
(%)
Sales (A)
Operating income (B)
Sales (C)
Operating income (D)
Energy and Electric 
Systems
259,273
4,576
277,461
16,530
18,188
11,954
107
Industrial Automation 
Systems
334,368
40,458
366,802
52,729
32,434
12,271
110
Information and 
Communication Systems
87,196
583
89,750
3,447
2,554
2,864
103
Electronic Devices
49,313
3,342
50,328
5,030
1,015
1,688
102
Home Appliances
227,007
8,957
239,913
10,658
12,906
1,701
106
Others
177,800
5,902
194,264
5,181
16,464
(721)
109
Subtotal
1,134,957
63,818
1,218,518
93,575
83,561
29,757
107
Eliminations and other
(160,198)
(9,988)
(179,848)
(10,462)
(19,650)
(474)
-
Total
974,759
53,830
1,038,670
83,113
63,911
29,283
107
*Note: Inter-segment sales are included in the above chart.
2. Sales and Operating Income by Location
(In millions of yen)
Location
FY '17 Q3
(Oct. 1, 2016 - 
Dec. 31, 2016)
FY '18 Q3
(Oct. 1, 2017 - 
Dec. 31, 2017)
C - A
D - B
C/A
(%)
Sales (A)
Operating income (B)
Sales (C)
Operating income (D)
Japan
785,379
37,679
825,868
61,456
40,489
23,777
105
North America
98,735
689
96,816
731
(1,919)
42
98
Asia (excluding Japan)
250,617
20,642
289,230
21,727
38,613
1,085
115
Europe
100,356
2,380
115,658
2,492
15,302
112
115
Others
11,732
863
15,056
1,039
3,324
176
128
Subtotal
1,246,819
62,253
1,342,628
87,445
95,809
25,192
108
Eliminations
(272,060)
(8,423)
(303,958)
(4,332)
(31,898)
4,091
-
Total
974,759
53,830
1,038,670
83,113
63,911
29,283
107
*Note: Inter-segment sales are included in the above chart
3. Sales by Location of Customers
(In millions of yen)
Location of Customers
FY '17 Q3
(Oct. 1, 2016 - 
Dec. 31, 2016)
FY '18 Q3
(Oct. 1, 2017 - 
Dec. 31, 2017)
B - A
B/A (%)
Sales (A)
% of total net sales
Sales (B)
% of total net sales

Japan
534,678
54.9
549,194
52.9
14,516
103

North America
101,932
10.4
97,671
9.4
(4,261)
96
Asia 
(excluding Japan)
229,080
23.5
263,447
25.3
34,367
115
Europe
90,282
9.3
104,790
10.1
14,508
116
Others
18,787
1.9
23,568
2.3
4,781
125
Total overseas sales
440,081
45.1
489,476
47.1
49,395
111
Consolidated total
974,759
100.0
1,038,670
100.0
63,911
107
Cautionary Statement
The Mitsubishi Electric Group (hereafter "the Group") is involved in 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 extend 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 Group trusts and considers to be reasonable under the circumstances on the date of announcement, actual financial standings and 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 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 the Group'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 the Group 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 Group's performance.
(5) Fund raising
An increase in interest rates, the yen interest rate in particular, would increase the Group'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
The Group 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 Group.
(8) Flaws or defects in products or services
The Group may incurlosses or expenses resulting out of flaws or defectsin products or services, and the lowered reputation of the quality of all its products and services may affect the entire Group.
(9) Litigation and other legal proceedings
The 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 Group's performance. 
(11) Business restructuring
The Group may record losses due to restructuring measures.
(12) Information security
The performance of the Group may be affected by computer virus infections, unauthorized access and other unpredictable incidents that lead to the loss or leakage of personal information held by the Group or confidential information regarding the Group's business such as its technology, sales and other operations.
(13) Natural disasters
The Group's operations, particularly manufacturing activities, may be affected by the occurrence of earthquakes, typhoons, tsunami, fires and other large-scale disasters.
(14) Other significant factors
The 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.
Notes
1. Change in the accounting policy
On April 1, 2017, the Company adopted Accounting Standards Update 2015-17 "Balance Sheet Classification of Deferred Taxes" issued by the Financial Accounting Standards Board. To reflect this adoption, all deferred tax assets and liabilities have been classified as noncurrent in the consolidated balance sheets and subsequently, deferred tax assets and liabilities in the same tax-paying component or tax jurisdiction were offset. The consolidated balance sheet as of March 31, 2017 has been reclassified to reflect this adoption and accordingly, deferred tax assets previously included in 'Prepaid expenses and other current assets' and deferred tax liabilities previously included in 'Other liabilities' have been reclassified as 'Other assets'.
###
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 4,238.6 billion yen (US$ 37.8 billion*) in the fiscal year ended March 31, 2017. For more information visit:
http://www.MitsubishiElectric.com
*At an exchange rate of 112 yen to the US dollar, the rate given by the Tokyo Foreign Exchange Market on March 31, 2017
Click on, or paste the following link into your web browser, to view the associated PDF document.
http://www.rns-pdf.londonstockexchange.com/rns/7582D_-2018-2-2.pdf


This information is provided by RNS
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