MANHASSET, N.Y. The slumping Japanese economy took its toll on Japanese electronics supplier Mitsubishi Electric Corp., which reported net income of $98.8 million on sales of $6.6 billion in the first fiscal 2006 quarter ended June 30. Sales rose 2 percent over the year-ago quarter, but net earnings fell 10 percent.
Mitsubishi saw sales decline 7 percent in its Information and Communication Systems segment with an operating loss of $52 million. The company attributed the loss to a reduction in mobile handsets, despite increases in optical broadband access system products mainly in fixed line communications infrastructure.
Mitsubishi’s Electronic Devices segment saw sales of $358.1 million, up 3 percent from a year ago, with operating income of $23 million. The semiconductor business saw an increase in both orders and sales from a year ago due to increases in power modules for white goods, hybrid cars, and domestic industrial machinery as well as laser diodes for recordable DVD players.
For the second fiscal 2006 quarter ending September, Mitsubishi expects sales of $14.2 billion, flat from the year-ago second quarter, with earnings of $177.8 million, up 5 percent from a year ago.