Brother’s Revenue Down but Profits Soar

Printer OEM Brother has boasted a profit increase in its printing & solutions business for the first quarter of the fiscal year.

In the period ending March 31, 2017 (1Q2017), Brother’s sales revenue fell 4%. However, the business segment profits, operating profits and income before and after tax were up between 27.1% and 31.8%.

The OEM reported sales revenue from its Printing and Solution segment (P&S business) dropped 8.3%, from JP¥103.9 billion (US$953 million) to JP¥95.3 billion (US$925.2 million).

However, the profits achieved by this same P&S segment increased by 64.6% to JP¥16.9 billion (US$164.077 million).

Brother stated the profit achieved at each level increased due to measures to improve profitability in its P&S business. It was also due to a temporary positive effect from the elimination of unrealized gains on inventories brought by the higher yen.

In addition, Brother also disclosed that its P&S business has bagged five “Summer 2016 Pick” awards in printers/MFPs and scanners from Buyers Laboratory LLC, a U.S. independent evaluation organization.

Other key highlights include:

• The three-month sales revenue was JP¥157.5 billion (US$1.444 billion), down 4% compared to the same period last year.
• Net income rose 31.8% to JPY¥15.3 billion (US$ million).

Further, the report noted that Brother has lowered the sales revenue forecast for fiscal year ending March 31, 2017, but is expecting the business segment profit to rise 8.7% to JP¥50 billion ($US 458.42 million).

Click here for the full financial report of Brother in 1Q2017.

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