Brother International 2009 Annual Report Download - page 14

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Operating loss: ¥845 million (down from operating income of ¥9,929 million)
Affected by significantly lower sales, the M&S business recorded operating losses.
Others
Net sales: ¥39,191 million (down 24.9% YoY)
Lower sales in the network karaoke and content business and the dissolution of a sales
subsidiary contributed to this decline in revenue.
Operating income: ¥832 million (down 39.2% YoY)
Lower sales resulted in a decline in profits.
Performance by Area (including inter-segment sales)
Japan
Net sales: ¥360,678 million (down 15.7% YoY)
Industrial sewing machine and machine tool sales fell as a result of a worsening market environment
and the negative effect of exchange rates owing to the stronger yen.
Operating income: ¥3,698 million (down 87.6% YoY)
Income was significantly lower due to the decline in sales and the negative impact of changes in
exchange rates.
The Americas
Net sales: ¥160,363 million (down 9.9% YoY)
Sales of communications and printing equipment increased, but an unfavorable exchange rate
situation resulted in lower revenues in this region.
Operating income: ¥2,051 million (down 70.5% YoY)
Intense market competition mainly in the P&S business, as well as increased selling, general and
administrative expenses, led to a decrease in income.
Europe
Net sales: ¥169,512 million (down 14.2% YoY)
Sales of communications and printing equipment increased, but the impact of a stronger yen
caused revenues to fall.
Operating income: ¥7,959 million (down 36.1% YoY)
Intense market competition mainly in the P&S business, compounded by increased selling, general
and administrative expenses, pushed down income.
Asia and Others
Net sales: ¥233,352 million (down 12.5% YoY)
Sales lagged in the region, owing to sluggish industrial sewing machine sales and disadvantageous
exchange rates.
Operating income: ¥2,306 million (down 55.9% YoY)
Lower sales was the primary factor behind the decline in industrial sewing machine sales.
Fund Procurement and Liquidity
The Brother Group’s financial policies ensure flexible and efficient funding and maintain an
appropriate level of liquidity for operating activities. We have created a cash management system to
optimize the groupwide use of cash held by individual companies. We also maintain open lines of
credit with multiple banking institutions to complement existing liquidity. By creating this system to
correct the uneven distribution of funds, we have succeeded in reducing our borrowing needs.
M&S
(¥ billion) (¥ billion)
63.0 67.8
41.7
8.5
9.9
-0.8
Fiscal years ended March 31
•
Net Sales (left)
•
Operating Income (
loss
) (
right
)
200920082007
0
3
6
9
12
15
0
15
30
45
60
75
Machine tools
Industrial sewing machines
Management’s Discussion and Analysis
12 Brother Annual Report 2009