Mitsubishi Electric Corp.'s business results continue to improve, backed by successful strategies to limit risks and a focus on solid businesses, such as capital investment-related equipment. Mitsubishi Electric has substantially reduced high-risk businesses such as semiconductors, large liquid crystal panels for TVs and PCs, and overseas mobile phone headsets, which have been less profitable or unprofitable since the IT bubble burst. In addition to large R&D and capital investments, these businesses face extremely fast technological innovations, short product cycles, and tough price competition. Given that the collection of investment funds is unlikely to proceed as planned, Standard&Poor's regards business reduction as a positive strategy to limit significant deterioration in business results. On the other hand, Mitsubishi Electric enhanced
