Brother Reports Profitable Nine-Months, Sales Revenue Up

Brother International of Japan has reported financial results for the nine months ending on December 31, 2017. Sales revenues for the nine-month period was 187.8 billion, an increase of 21.2 billion yen, or 12.7 percent. Within this increase, 10.5 billion, approximately half, was the result of positive effects from exchange rates, in conjunction with the lower value of the Japanese yen. The remainder of approximately 10.6 billion was an increase in real terms excluding the effects of foreign-exchange rates.

As was the case in the first half of the year, Brother says the main causes of the increase were “globally strong sales of laser all-in-ones and laser printers, both black-and-white and color, as well as firm sales of
machine tools to the IT, automotive, and general machinery industries.”  Brother reported “strong sales in the Printing and Solutions business, including approximately 3.0 billion yen in exchange rate effects from the elimination of unrealized inventory profit.”

Operating profit was 21.8 billion, up 10.6 billion year-over year.

Net income was 16.2 billion, a year-over-year increase of 4.5 billion.

Another factor was an increase of approximately 3.0 billion in Brother’s Machinery Business as a result of strong sales of machine tools.

According to Brother: “Trends remain nearly unchanged from the first half, and the business environment for printing, primarily targeting the SOHO market, is stable.” In the small and mid-size business market, a high-priority field for Brother,  large-scale orders are increasing, mainly in Europe, and the effects are manifesting in negative price changes.

Cost reductions resulted in a 700 million declinein profit, but the effects were almost entirely in the Printing and Solutions Business.

Forecast

Brother stated that “Progress has been made in each business generally in line with plans through the third quarter,” and it has left its forecast (below) unchanged.

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