Sales Up, But Profits Down for Brother International’s Fiscal Year; Printer Group Sales Steady
Brother International of Japan reported financial results for its fiscal year that ended on March 31, 2016, with net sales up 5.5 percent to 745 billion yen, but net income down 42.5 percent to 31 billion yen, both versus the previous fiscal year.
Within Brother’s Printing & Solutions group, however, sales were up slightly to 476 billion yen, versus 474 billion yen for the previous fiscal year. Operating income for the group however was down slightly to 34 billion yen, versus 35 billion yen for the previous fiscal year.
Overall, net sales for Brother were highest in the Americas, totaling 252 billion yen, and up versus the previous fiscal year’s Americas sales of 230 billion yen.
Brother also reported that it recorded a loss on the valuation of its investment in XING Inc., a Brother subsidiary, a loss factored into its financial results. The firm noted that the financial condition of XING has deteriorated, causing the fair value of XING shares to “decline significantly.” As a result of this decline, Brother’s investment in XING is deemed impaired, and according to Japanese Accounting Standard for Financial Instruments, Brother expects to recorded an extraordinary loss on valuation of investment in XING amounting to 10 billion yen.
For its current fiscal year that will end on March 31, 2017, Brother is projecting net sales of 384 billion yen for its Printer group, and total net sales for all its groups of 657 billion yen. It’s also forecasting operating income of 45 billion yen, down from the 47 billion yen for its previous fiscal year.