Mitsubishi Electric has revised its financial forecasts for the current year, blaming stalled demand for IT products.

The company cut its full-year sales forecast, for the period ending March 2002, by 9.3 per cent to £23 million.

Its pre-tax income forecast has been axed from a profit of £694 million to a loss of £115 million. The company said it now expects net income to be £11 million against a previous forecast of £434 million.

Zero sum The pre-tax loss and net income are expected to be reported in the first half of the current year, with net income in the second half being close to zero.

The profitability outlook at some of the company's operations is holding steady, but at other divisions is worsening, Mitsubishi said. The electronic devices and information- and communication-systems divisions, and particularly the semiconductor and cell phone units, are in the latter category, the company said.

In addition to the downgrade, the company also said it plans to close its North American mobile-communications unit, Mitsubishi Wireless Communications, on March 31, 2002. On that date, the company's Japanese and European units will take over development and supply of cell phone handsets for North America. The closure will mean the loss of 155 jobs.