Mitsubishi Electric Corporation's president and CEO Tamotsu Nomakuchi announced its financial results for the first quarter ending June 30, 2005, of the current fiscal year ending March 31, 2006. Operating income decreased 20 percent from the same period of the previous fiscal year to 20.9 billion yen (approx. U.S. $186.2 million). Despite the Electronic Devices segment's return to profitability as well as the Home Appliances segment's increase in profits, there was worsening of the Energy and Electric Systems and Information and Communications Systems segments.
The social infrastructure systems business saw increases in both orders and sales compared to the same period of the previous fiscal year. Despite curbs in public sector investment and investment by railway operations, etc., there were increases from large-scale projects in power systems and reintegration of transmission and distribution related business. The building system business experienced increases in both orders and sales compared to the same period of the previous fiscal year due to large domestic orders in elevators and escalators as well as increases in initiatives for China, the Middle East, and ASEAN countries. As a result, total sales for this segment increased 16 percent from the same period of the previous fiscal year, and operating income fell 2.7 billion (approx. $24.1 million) due to an increasing cost of sales ratio.
The telecommunications equipment business fell compared to the same period of the previous fiscal year with a decrease in both orders and sales. This was due to a reduction in mobile handsets despite increases in optical broadband access system products mainly in fixed line communications infrastructure. The information systems and service business saw a decrease in sales from the same period of the previous fiscal year. This was due to decreases in the IT solution and platform businesses etc., despite extension of the information outsourcing business. The electronic system business had a comeback in governmental projects, and both orders and sales increased. As a result, total sales for this segment showed a decrease of 7 percent compared to the same period of the previous fiscal year. Operating income became worse by 2.7 billion yen (approx. $24.1 million) due to decreases in sales, etc.
The home appliance business saw an increase in sales of 3 percent compared to the same period of the previous fiscal year. Along with air conditioners for domestic and overseas market and refrigerators, washing machines and other white goods for the domestic market, there were increases mainly in domestic residential home equipment such as electric water heaters, solar power generation systems, and induction heating cooking heaters for use in all electric-powered homes. Operating income increased 0.9 billion yen (approx. $8 million) due to increases in sales, etc.
to Daily News