The net loss at Japan's third largest electronics maker shrank to 11.8 billion yen (98.3 million dollars) from 78.0 billion yen a year ago.

It achieved a pre-tax profit of 2.5 billion yen, compared with a loss of 155.1 billion yen previously, while revenue was down marginally at 3.64 trillion yen from 3.65 trillion yen.

"Mitsubishi Electric's performance... (was) due to the valuation losses in financial shares, which were caused by equity market downturn and the deferred tax assets reassessment," the firm said in a statement.

The Tokyo Stock Exchange's Nikkei-225 index lost almost 30 percent over the recently ended financial year.

In addition, a new local tax law, passed at the end of March, removed a loophole in accounting rules that enables Japanese firms to inflate balance sheets by including items such as deferred tax assets.

Mitsubishi Electric Corp. remained cautious about future prospects "due to more marked slowdown in the global economic recovery and the continuing international political and economic instability."

It predicted a net profit of five billion yen in the current year, zero pre-tax profit and sales of 3.25 trillion yen, an 11 percent decline.

SPACE.WIRE