Mitsubishi Electric Corp. revised its earnings forecasts for the second time this year, reporting that net income will probably decline 94% to 10 billion yen (approx. US$112 million) in the year to March 31 from a year earlier. The company projected its lowest net income in six years and reduced its profit and sales forecasts for the second time since April, it said, as demand for manufacturing gear slumps amid the global recession. It said that operating profit will fall 55% this fiscal year, as revenue dips 11% to 3.6 trillion yen.
"Demand is likely to decline until the second half of next fiscal year," said Executive Vice President Yukihiro Sato. "The recovery will probably come in the January-to-March period and is unlikely to be a speedy one."
For 4Q 2008, the company reported a net loss of 28.3 billion yen in the three months ended Dec. 31, compared with income of 42.3 billion yen a year earlier. Operating profit declined 45% to 35.2 billion yen as sales fell 11% to 807.9 billion yen.
Revenue at the factory-automation equipment division, including machines that help build cars and flat-panel displays, fell 22%. Sales of home appliances, such as air-conditioners, refrigerators, flat-panel televisions, and DVD recorders, dropped 10%.
to Daily News