BROTHER INDUSTRIES LTD. <6448> climbed for a third straight session on the 11th, hitting a fresh year-to-date high. The market cheered the company's consolidated forecast for the fiscal year ending March 2027, which projects sales of 910 billion yen (up 1.9%), operating profit of 85 billion yen (up 9.2%), and net profit of 72 billion yen (up 6.5%). The annual dividend is slated to remain at 100 yen.

Despite factoring in risks from Middle East tensions, rising component costs, and shifting U.S. tariff policies, the company anticipates growth in industrial equipment and the expansion of its industrial printing business through the addition of MUTOH HOLDINGS CO., LTD. <7999>. BROTHER INDUSTRIES aims to bolster earnings via cost reduction and controlled promotional spending. The assumed exchange rates are 150 yen to the dollar (versus 150.97 yen in the previous year) and 180 yen to the euro (versus 174.54 yen).

For the fiscal year ended March 2026, BROTHER INDUSTRIES reported sales of 893.46 billion yen (up 5.3%), operating profit of 77.87 billion yen (up 15.0%), and net profit of 67.62 billion yen (up 23.5%). Results were buoyed by solid sales of printing units and consumables, aided by pricing effects, and robust demand for industrial equipment.

Simultaneously, the firm announced a buyback of up to 10 million shares, or 4.02% of outstanding stock, with a value of up to 20 billion yen, providing an additional catalyst for the stock. The program runs from May 11 to April 30 next year. It will also cancel 7.31 million treasury shares, or 2.84% of total shares, effective June 1.

Source: MINKABU PRESS

*Translated by generative AI. Click here for the original article.