Brother Registers Steady Sales Growth of Hardware and Consumables

Brother released its earnings for the nine months and third quarter of fiscal year 2014 (ending March 31, 2015).

As was reported, the OEM’s net sales of the nine months reached ¥521.4 billion (US$5.06 billion), up 15.4% year-on-year(YoY), attributed to performance growth in the M&S business with strong sales of Machine tools and yen’s depreciation. Net income is more than trebled to ¥48.1 billion (US$466.54 million), due to a gain on the sale of property and tax effect accounting. In the segment of Communications & Printing equipment, net sales is ¥311.9 billion(US$2.91 billion), growing 9.9% YoY. The OEM stated in the Asia and Others region excluding Japan, hardware sales steadily increased. Consumables sales remained solid in each region. Sales in Japan decreased year-on-year due to lingering weak demand resulting from the impact of the consumption tax hike.

For the third quarter of fiscal year 2014, net sales amounted to ¥196.8 billion(US$1.83 billion), increasing 20.3% YoY. Net income is ¥10.9 billion(US$101.61 million), up 104.1%. For the segment of Communications & Printing equipment, net sales is ¥118.7 billion(US$1.11 billion), rising 14.6%. It is noted that sales in each region remained steady. In Japan, although demand for inkjet printers was weak at the year-end, overall sales including LBP increased year-on-year.

For the outlook, the company’s net sales of Communications & Printing equipment for fiscal year 2014 is forecast to reach ¥422.8 billion(US$3.94 billion), with a growth of 10.1% YoY. Hardware sales forecast has been mainly revised downward in each region excluding Japan.

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