Brother Reports Encouraging Results for Fiscal Year

Brother Industries HQ in Nagoya Japan

While we’ve had some disappointing financial news out of Japan recently, on May 9th, Brother International of Japan bucked the trend, reporting upbeat results for its latest fiscal year, the 12 months that ended on March 31, 2017. While sales revenue totaled 6,412 million yen, down 6.0 percent versus the previous fiscal year, net income was 442 million yen, up 14.6 percent.

Brother stated that despite the “solid global growth” of its Printing and Solutions business, sales declined “due to a large negative impact of (the Japanese) yen’s appreciation.”

The firm reported that sales volume for both monochrome and color laser printers surpassed that of the previous year, due to increased sales of models targeting the SOHO market. In the inkjet-printer market, Brother says it shifted toward selling “highly profitable models.”

Overall, Brother stated that “Profit increased significantly in real terms as a result of the efforts made according to the new mid-term strategy to enhance profitability of the P&S (Printing and Solutions) business, despite a 13.2-billion yen negative impact of (the) yen’s appreciation in the business-segment profit.”

Sales for the Printing and Solutions group for the yea were 3,836 million yen, down 7.6 percent, but operating profit for the Printing and Solutions group was 455 million yen, up 16.7 percent.

Forecast

For its current fiscal year that will end in March 2018, Brother is forecasting sales of 6,550 million yen, up 2.2 percent versus the previous fiscal year, and 430 million yen for net income, down 9 percent versus the previous fiscal year, reflecting the negative effects of a stronger Japanese yen. It’s expecting sales for its Printing and Solutions group to decline by 1.5 percent, and operating profit for the group to decline by 6.6 percent.

For its Printing and Solutions group, its goals are to:

  • Maintain its presence in the SOHO market and maximize profit.
  • Increase growth in the small and mid-size market.
  • Seek profitability improvement in emerging economies.
  • Increase profitability for its inkjet-printer business.
  • Maintain its supply business model.

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