EconomyInstitutionalMitsubishi Electric declining following lower capital investment in China

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Major electronics manufacturer Mitsubishi Electric registered a 13% decrease in profit compared to the same period in the previous year due to a decline in smartphone-related equipment investment in China reported in the nine-month settlement to December last year.

According to Mitsubishi Electric’s announcement on April 4 last year from April to December, the group’s sales increased by 2.4% compared with the same period in the previous year to 3, 264.1 billion yen, but the final profit was 158.8 billion It decreased by 13.7% against the yen. 

This was due to a decrease in capital investment in smartphone-related factories in China and orders for automotive parts etc., sales to China fell by 9% from the same period in the previous year. 

Mitsubishi Electric’s Deputy Accounting Director said, “There are overlapping moves to stop capital investment in the Chinese market, in the meantime, I am afraid this trend will continue for a while”.

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