Brother Reports Fiscal Year, Fourth-Quarter Results
Brother International of Japan – which, by this way, is marking its 110th anniversary this year – today released financial results for its fiscal year that ended on March 31, 2018. Sales revenue was 7,130 million yen, up 11.2 percent, while net income was 500 million yen, up 5.9 percent, and operating profit was 687 million yen, up 16.1 percent, all versus the previous fiscal year.
Net income of 500 million yen reached a new record high (excepting fiscal-year 2014, when Brother realized gains from the sale of assets).
According to Brother, its Printing and Solutions and Machinery businesses “drove sales revenue to a record high,” with sales of printing products strong globally, and sales of machine tools for automobiles, general machinery, and IT strong, reaching record highs.
Printing and Solutions Business
The Printing and Solutions Business recorded sales revenue of 4,112 million yen for the fiscal year, up 7.4 percent versus the previous fiscal year, and exceeding Brother’s forecast. Operating profit for the group was 474 million yen, up 4.0 percent versus the previous fiscal year, and also exceeding Brother’s forecast.
For its fourth quarter that ended on March 31, 2018, Brother reported sales revenue of 1,788 million yen, up 8.8 percent versus the fourth quarter of the previous fiscal year. Net income for the quarter was 112 million yen, up 30.4 percent versus the fourth quarter of the previous fiscal year.
For its fourth quarter, its Printing and Solutions business reported sales revenue of 104 million yen, up 34.5 percent, and operating profit of 120 million, up 26.9 percent, both versus the fourth quarter of the previous fiscal year.
Forecast: “Record High Profits”
For its current fiscal year that will end in March 2019, Brother is forecasting sales revenue of 6,900 million yen, down 3.9 percent, operating profit of 700 million yen, up 1.9 percent, and net income of 520 million, up 4.2 percent, with all versus the previous fiscal year. It noted: “Due to the effects of lower corporate taxes in the U.S. and other factors, record high profits are forecast.”
For its Printing and Solutions business, it’s forecasting that sales revenue will be down 4.5 percent to 3,935 million yen, but operating profit will be up 3.3 percent to 489 million yen, both versus the past fiscal year.
For its Printing and Solutions business, Brother will be focusing on:
- Maintain and expand share of the SOHO (small office/home office) market: Increase profitability by reinforcing its lineup of printers with high-capacity consumables capability.
- Expand business with SMBs (small and mid-size businesses): Develop solutions business tailored to conditions in various regions such as with managed print services (MPS) and contract-type business.
- Expand business in emerging economies: Shift its lineup to high-profit products by increasing sales of refillable ink-tank inkjet models.
- Expand solutions business: Expand and enhance the product lineup to meet a variety of needs including offices, retail, and logistics.
- February 2018: Brother Reports Profitable Nine-Months, Sales Revenue Up
- January 2018: New Brother Laser Printers, MFPs with Amazon Dash, Brother Refresh Automatic Toner Delivery
- May 2017: Brother Reports Encouraging Results for Fiscal Year
- March 2017: New Brother Business-Class Laser Printers, MFPs Feature ‘Enterprise-Level Security,’ Workflow Solutions
- March 2017: New Brother INKvestment All-in-Ones with 11″ x 17″ Media Handling, Black Ink at 1¢ Per Page
- November 2016: Brother Posts Upbeat Financials for First Half, Super-High-Yield Ink Tanks Improve Profitability
- October 2016: ‘Printing for Pocket Change’ – New Brother INKvestment Inkjet Printers Promise a Penny-per-Page for Black Prints
- August 2016: Brother’s Sales Fall, but Profit on the Upswing