Lower Revenues for Brother, But Some Bright Spots

Brother International of Japan today reported financial results for its three-month second quarter and six-month first half, with both periods ending on September 30, 2019.

First Half

For the six months ending on September 30, 2019, Brother reported net revenues of ¥318.4 billion, down 7.3 percent year-over-year; operating profit of ¥36.5 billion, down 4.0 percent year-over-year; profits of ¥27.2 billion, down 4.5 percent year-over-year; and comprehensive income of ¥2.8 billion, down 91.5 percent year-over-year.

Printing and Solutions Group Sees Operating Profit Gain

For the six months, Brother’s Printing and Solutions Group reported net revenues of ¥193.2 billion versus net revenues of ¥198.6 billion for the same period a year earlier, and operating profit of ¥31.1 billion, up versus operating profit of ¥26.2 billion  for the same period a year earlier.

Second Quarter – Lower Revenue But Increased Profits

For its second fiscal quarter that ended on September 20, 2019, Brother reported net revenues of ¥159.2 billion versus ¥172.5 billion for the same quarter a year earlier;  operating profit of ¥18.4 billion versus ¥15.7 billion for the same quarter a year earlier; and profits of ¥14.4 billion versus ¥12.06 billion for the same quarter a year earlier.

Printing & Solutions Group

For the second quarter, this group reported net revenue of ¥95.0 billion versus ¥99.1 billion for the second quarter a year earlier, and operating profit of ¥14.4 billion versus ¥10.2 billion for the second quarter a year earlier.

Forecast

For its fiscal year that will on March 31, 2020, Brother cut its forecast, noting that while its Printing and Solutions group is performing well, it can’t make up for the decline in sales for Brother’s Machinery business. Consequently, Brother reduced its forecast.

It’s now forecasting net revenues of ¥642.0 billion, down 6.1 percent versus the previous fiscal year, and down 7.0 versus its previous forecast. It’s also forecasting operating profit of ¥60.5 billion, down 15.9 percent versus the previous fiscal year and down 6.9 percent versus its previous forecast.

Finally, it’s forecasting profits of ¥44.5 billion, down 17.4 percent versus the previous fiscal year and down 8.2 percent versus its previous forecast.

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