Business Description

Mitsubishi Electric Corporation is engaged in the production, development, sale, and marketing of electronic and electric equipment. The Tokyo headquarters of the company was established on January 15, 1921. It is involved in the given following business segments. Industrial Automation Systems include measurement and control systems, industrial automation products, and electronic and automotive products. The Home Appliances segment includes air-conditioning, photovoltaic power generation systems, televisions, and recorders.

Logistics, material procurement, and real estate are all included in the Others segment. Information and Communication Systems include closed-circuit, wireless and satellite televisions, space and satellite communication systems, antennas and radar devices, and information communication network systems. The Energy and Electric Systems segment includes power and transportation systems, elevators and escalators, and supervisory controller systems. The Electronic Devices segment includes power, high frequency, and optical devices, as well as liquid crystal displays.

Key Financials

Revenue (US$ Mn):

• Mitsubishi Electric Corporation’s annual revenue for 2021 was US$ 38,032 Mn, a -3.36% decrease from 2020
• The annual revenue generated by Mitsubishi Electric Corporation in 2020 was US$ 39,353 Mn
• At a 0.64% increase from, Mitsubishi Electric Corporation’s annual revenue of US$ 41,095 Mn was indexed in 2019
• Mitsubishi Electric Corporation generated total revenue of US$ 40,834 Mn in 2018

Operating Income (US$ Mn):

• US$ 2,089 Mn was the operating income generated by Mitsubishi Electric Corporation in 2021
• Mitsubishi Electric Corporation’s operating income for 2020 was US$ 2,161 Mn, a -9.61% decrease from 2019
• From 2018’s operating incomes, Mitsubishi Electric Corporation registered a -8.88% decrease in 2019, amounting to US$ 2,391 Mn
• An operating income of US$ 2,624 Mn was generated in 2018 by Mitsubishi Electric Corporation

Net Income (US$ Mn):

• Mitsubishi Electric Corporation’s net income for 2021 was US$ 1,753 Mn, a -3.33% decrease from 2020.
• The net income generated by Mitsubishi Electric Corporation in 2020 was US$ 1,813 Mn.
• At a -0.23% decrease, Mitsubishi Electric Corporation’s net income of US$ 2,043 Mn was indexed in 2019.
• Mitsubishi Electric Corporation generated a net income of US$ 2,048 Mn in 2018.

Operating Margin %:

• 5% was the operating margin generated by Mitsubishi Electric Corporation in 2021.
• Mitsubishi Electric Corporation’s operating margin for 2020 was 6%, a -5.17% decrease from 2019.
• From 2018’s operating margins, Mitsubishi Electric Corporation registered a -9.38% decrease in 2019, amounting to 6%.
• An operating margin of 6% was generated in 2018 by Mitsubishi Electric Corporation.

Gross Margin %:

• Mitsubishi Electric Corporation’s gross margin for 2021 was 5%, a 0% decrease from 2020.
• The gross margin generated by Mitsubishi Electric Corporation in 2020 was 5%.
• At a -2% decrease, Mitsubishi Electric Corporation’s gross margin of 5% was indexed in 2019.
• Mitsubishi Electric Corporation generated a gross margin of 5% in 2018.

SWOT Analysis

Strengths

A broad product portfolio and balanced revenue streams reduce business risks

Mitsubishi Electric offers a wide product range and well-balanced revenue streams. Six segments make up the company: Information and Communication Systems, Home Appliances, Electronic Devices Energy and Electric Systems, Industrial Automation Systems, and Other. The Industrial Automation Systems segment manufactures automation products, including inverters, programmable logic controllers, servo motors, motor hoists, human-machine interfaces, and magnet switches.

The Energy and Electric Systems segment of the company produces turbine generators and hydraulic turbine generators. It also manufactures motors, transformers, and other power electronics equipment. Mitsubishi Electric’s Home Appliances segment produces products for home use. These include Refrigerators, electric fans, liquid crystal displays (LCD), televisions (TVs), air conditioners, heat pump boilers, and ventilators.

Photovoltaic power generation system, hot water supply systems. The Information and Communication Systems segment produces products like wireless and satellite communications equipment wired communication systems, and surveillance cameras. Electronic Devices has high-frequency devices, power modules, optical devices, and LCD devices. The Other segment of the company is involved in logistics, real estate, finance, procurement, estate, advertising, and other services.

The company also has balanced revenue streams. In FY2021, Energy and Electric Systems was the largest segment of the company. It was followed by Industrial Automation Systems (26.3%) and Home Appliances (21.9%). Information and Communication Systems (8%), Electronic Devices (4.3%), and Others (12.7%). Mitsubishi Electric’s extensive product range allows it to serve a wider customer base, thereby increasing its margins and revenues. Balanced revenue streams help reduce business risk and promote overall growth.

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