Brother Posts Upbeat Financials for First Half, Super-High-Yield Ink Tanks Improve Profitability

Brother International booth

In defiance of many Japanese printer/MFP vendors that have recently reported poor financial results for the first half of their fiscal years, Brother International of Japan recently reported upbeat financial results for its first half.

For the first half of it fiscal year running from April 1 to September 30 2016, and that will end in March 2017, Brother reported net revenue of ¥310.27 billion, down 9.2 percent versus the same period a year ago. But Operating profit was up 19.5 percent, and profits were up 26.8 percent.

Brother’s Business group, which includes printers, MFPs, and supplies, saw its revenue increase by 28.1 percent. Within its Business group, sales revenue for its Printing & Solution group rose 3.6 percent.

The firm states that despite “robust sales” for its Printing & Solutions group, sales for the most part declined due the appreciation of the Japanese yen and the lack of orders from for machine tools from IT customers.

However, it says profits at all levels increased because of Brother’s efforts to improve profitability worked mainly in its Printing & Solutions group, despite a ¥7.7 billion negative impact on the business-segment profit.

Overall during its first half, sales of both black-and-white and color laser printers exceeded those recorded for the previous period. Although it says sales of inkjet printers were down, profitability improved for its inkjet printers with Brother’s introduction of inkjet printers with super-high-yield ink tanks.

Forecast

Despite these results, however, for its full fiscal year that will end on March 30, 2017, Brother revised its forecast, and is now forecasting net revenue to be down 7.6 percent, and profits down 9.5 percent.

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