Revenues Up, But Profits Down for Brother’s First Quarter

Brother International of Japan has reported financial results for its first fiscal quarter that ended on March 31, 2017, with revenue of  ¥167,728 million, up 6.5 percent, and profits of ¥9,322 million, down 39.2 percent, both versus the first quarter a year earlier.

Brother’s Printing and Solutions group posted profits of ¥9,144 million for the first quarter, versus ¥17,908 million for the quarter a year earlier. (The Printing and Solutions group consists of printers, All-in-Ones, labeling systems, label printers, scanners, etc.)

Within the Printing and Solutions group, sales of communication and printing equipment were ¥87,666 million, up 4.4 percent versus the same quarter a year ago.

Total sales for the Printing and Solutions group – which includes communication and printing equipment, as well as electronic stationary – were ¥98,800 million, up 3.0 percent versus the first quarter a year earlier.

Sales revenue for the Printing and Solutions group for the first quarter was ¥988 million, up 3.0 percent versus the first quarter a year earlier.

Within the Printing and Solutions group, sales of laser printers and All-in-Ones “steadily grew on a global basis, as well as sales of the inkjet All-in-One models with ink tanks.”

Overall, Brother says its business-segment profits “stayed almost at the same level as the previous year,” excluding a decrease of ¥2.2 billion in the Printing and Solutions group that resulted from the change of calculation method of unrealized inventory profit. Profit for the Printing and Solutions group was ¥134 million, down 21.1 percent versus first-quarter 2016.

Operational profit decreased “due to the fact that the yen dropped sharply against the euro, creating a temporary increase of impairment loss related to the exchange contract.”

Forecast

For its fiscal year that will end on March 31, 2018, Brother is forecasting revenue of ¥680,000 million, up 6.1 percent versus the previous fiscal year, and profits of ¥46,000 million, down 2.6 percent versus the previous fiscal year.

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