Brother Industries (6448) investor relations material

Executive summary

• Q2 revenue rose 14.3% YoY to ¥248.8 billion and operating profit rose 21.2% to ¥27.3 billion; revenue and profits at all levels reached second-quarter records.

• H1 revenue was ¥502,163 million, up 18.5%, while operating profit rose 114.9% to ¥81,950 million and profit for the period increased 152.8% to ¥71,497 million.

• Full-year revenue and profit forecasts were raised, with machine-tool demand and improved results supporting the revision.

Financial highlights

• Q2 business segment profit was ¥26.6 billion, up 22.6%; profit before income taxes was ¥28.7 billion, up 23.3%, and net income was ¥21.6 billion.

• H1 business segment profit was ¥81,383 million, up from ¥40,260 million; profit before income taxes was ¥85,474 million.

• H1 profit from continuing operations was ¥63,205 million and discontinued operations contributed ¥8,291 million; basic EPS was ¥289.09.

• H1 gross profit was ¥238,676 million, compared with ¥180,592 million a year earlier.

Outlook and guidance

• Full-year revenue forecast increased to ¥1,000,000 million from ¥980,000 million; operating profit forecast rose to ¥105,000 million from ¥90,000 million, and net income to ¥88,000 million from ¥77,500 million.

• Full-year business segment profit forecast rose by ¥15,000 million to ¥105,000 million; improved results and reassessed risks outweighed higher promotional spending and next-year improvement costs.

• Forecast profit before income taxes is ¥110,000 million; continuing-operations net income is ¥79,700 million.

• Machinery sales forecast increased to ¥111,000 million, mainly on machine tools; P&S sales forecast is ¥616,800 million and segment profit ¥80,000 million.

• Full-year basic EPS is forecast at ¥359.73 and dividends at ¥120 per share, versus ¥268.10 and ¥100, respectively, for the prior year.