Electronics and electrical equipment company Mitsubishi Electric Corporation (LON: MEL) posted its first half results on Halloween, only to see its fundamentals spooked by the turbulent macro economic landscape.
Elsewhere in the tech sector, other companies have fared better. Echoh PLC (LON: ECK) boasted strong first half results, dotDigital Group plc (LON: DOTD) saw their profits surge and ProPhotonix Ltd (LON: PPIX) secured a five year supply agreement.
While the Company’s revenue grew 1% on a year-on-year basis, to 2.18 trillion Yen, their operating profit contracted 9% on-year, to 114 billion Yen.
Further, the Group’s profit before income tax narrowed by 12% to 124 billion Yen and their net profit attributable to stockholders declined by 11% to 91 billion Yen.
Commenting on the economic landscape, the Mitsubishi Electric Corporation statement read,
“The economy in the first half of fiscal 2020, from April through September 2019, saw a slower growth in China, with the corporate sector experiencing a slowdown in exports and capital expenditures for fixed assets. In the U.S., the economy continued to grow due primarily to buoyant personal consumption, but the corporate sector began to slow down mainly in capital expenditures. In addition, the economic recovery became slower in Japan and Europe, with Japan seeing a decrease in production and exports, and Europe experiencing a fall in production.”
The Company added that it had revised its 2020 outlook, and operationally, it announced it was to open a London office to support energy efficient buildings.
The Group’s shares have rallied 0.59% or 9¥ to 1,572¥ per share 31/10/19 09:48 GMT. Neither a p/e ratio nor a dividend yield are available.
