1. While revenue increased owing primarily to the weaker yen, operating profit decreased due mainly to the impact of Shanghai's lockdown and the components shortage.
Revenue in Q1 achieved a new record high for the second straight year owing mainly to the weaker yen. The orders remained favorable in the factory automation systems business, particularly in the fields related to the digital equipment and the decarbonization.
Revenue in China decreased due to the impact of Shanghai's lockdown. Operating profit decreased YoY because of the continued components shortage particularly in the air conditioning systems & home products business.
The orders in the factory automation systems business are expected to remain favorable in and after Q2. While there are concerns about the rise in material prices, the forecast for FY '23 remains unchanged from the previous announcement owing mainly to a trend of recovery of the material procurement environment and revised foreign exchange rates.
Based on a certain premise, the company has taken into consideration the impact of improper testing, including costs for additional inspections and strengthening the quality control system. Depending on the progress of future discussions with customers and investigations, the Group may incur losses exceeding its premise or relating to the discovery of any other improper quality control practice. If any potential impact comes to light, it will be disclosed promptly.
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Mitsubishi Electric Corporation published this content on 28 July 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 July 2022 04:27:03 UTC.
Mitsubishi Electric Corporation is one of the world's leading manufacturers of electric and electronic equipment. Net sales (including intragroup) break down by family of products and by services as follows:
- industrial automation equipment (28.6%): programmable controllers, motor operators, counters, industrial robots, clutches, etc.;
- electric equipment (24.2%): generators, motors, transformers, power circuit breakers, testing systems, etc.;
- household appliances (22.4%): televisions, video recorders, air conditioners, refrigerators, lamps, vacuum cleaners, etc.;
- information and communication equipment (6.9%): mobile phones, satellites, aerials, medical and audiovisual equipment, servers, computers, etc.;
- electronic components and devices (4.7%): memory, logic integrated circuits, monitors, plasma screens, printed circuit cards, etc.;
- other (13.2%): financial services, real estate management, engineering and maintenance services, etc.
Net sales break down geographically as follows: Japan (52.1%), Asia (24.9%), Europe (11.1%), North America (10.3%) and other (1.6%).
MITSUBISHI ELECTRIC CORPORATION 
