Brother Industries

Company history

Founded
1908
Head office
Nagoya, Japan
Listed
1963
Founder
Yasui Masayoshi
Revenue · FYE Mar 2026
$5.6B (¥894bn)
Net profit · FYE Mar 2026
$427.4M (¥68bn)
Brother Industries: long-term performance & turning pointsSales (¥ bn)Net margin (%)

1908A Nagoya sewing-machine shop

Revenue (¥ bn, bars) · net margin (%, line)
Source: securities reports & corporate yearbooks
  1. 1908Yasui Kanekichi opens a sewing-machine repair shop in Nagoya
  2. 1928Own-built lathe and a straw-hat stitching machine; the BROTHER mark
  3. 1932A domestic household sewing machine — breaking Singer’s grip
  4. 1934Nippon Sewing Machine Manufacturing founded in Nagoya
  5. 1954Brother International (U.S.A.) opens in California

In April 1908 Yasui Kanekichi, an engineer who had left the Atsuta arsenal, opened a small shop in Nagoya buying up, repairing and reselling second-hand Singer sewing machines; Meiji Japan had no precision-machining industry able to build a sewing machine of its own, and imports ruled the market. When Kanekichi died in 1925, his eldest son Yasui Masayoshi took over the trade, joined by his younger brothers and sisters — ten siblings in all — and that November the shop was renamed the Yasui Sewing Machine Brothers Company, formalising the family enterprise from which the eventual brand, BROTHER, would take its name.

The habit that would define the company appeared at once: rather than buy its tools, it built them. In 1928, as the recession shrank repair demand, the brothers machined their own eccentric lathe and developed a chain-stitch machine for making straw hats — owning the machining before the machine. In 1932, with Singer holding some 90% of the market and the drain of foreign currency a national concern, Masayoshi completed a domestic household sewing machine; as Singer withdrew under the wartime economy, the brothers incorporated to fill the gap, founding Nippon Sewing Machine Manufacturing in Nagoya in January 1934 — twenty-six years from a repair counter to a domestic manufacturer.

Sewing machines sold seasonally and left the plant idle for months, so the brothers did what they would keep doing: redeploy their machining into new lines — knitting and washing machines from 1954, refrigerators from 1957 — and home appliances would supply a tenth to a fifth of sales into the 1970s. In 1954 they set up Brother International (U.S.A.) in California to sell exported machines directly, laying the first thread of the overseas network on which the company still runs.

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1958From sewing machines to office machines

Revenue (¥ bn, bars) · net margin (%, line)
Source: securities reports & corporate yearbooks
FY1967 · unconsolidated
Revenue$98M
Net income$6M
Net margin6.5%
FY1988 · consolidated
Revenue$1.6B
Net income$47M
Net margin2.9%
  1. 1961Portable typewriters — the office-equipment business begins
  2. 1962Renamed Brother Industries; machine-tool sales begin
  3. 1963Listed on the Tokyo, Nagoya and Osaka exchanges
  4. 1971High-speed dot printer, OEM for Centronics
  5. 1987First in-house monochrome laser printer
  6. 1988P-Touch label printer

A restless redeployment of the same skills carried Brother out of sewing machines. In 1961, at the request of its US sales arm, it began building portable typewriters for an American office market that welcomed cheap, capable Japanese machines — the seed of its office-equipment business. In 1962 it renamed itself Brother Industries and, spinning off the tapping machines it had built in-house for its own production lines, began selling machine tools as a business in their own right; in January 1963 it listed on the Tokyo, Nagoya and Osaka exchanges.

The core kept migrating. Electronic calculators followed in 1966, and in 1971 Brother began OEM production of a high-speed dot printer for America’s Centronics — the pivot from typewriters to printers that seeded today’s P&S (printing and solutions) business. By fiscal 1983 office machines were 39.3% of sales against sewing machines’ 27.9%: seventy-five years in, the founding trade had been overtaken by the office typewriter. As US trade friction over typewriter exports bit and the yen climbed, Brother built typewriter plants in the UK (1985) and the US (1986) and had moved household-machine production to Taiwan from 1978 to blunt currency risk.

Then it began assembling the pieces of what it is now: thermal-fax OEM supply and its first own-controller monochrome laser printer in 1987, and the P-Touch label printer in 1988 — each a fresh transfer of sewing-machine-era precision into a new domain.

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1989Reinventing into information equipment

Revenue (¥ bn, bars) · net margin (%, line)
Source: securities reports & corporate yearbooks
FY1989 · consolidated
Revenue$1.6B
Net income$26M
Net margin1.7%
FY2006 · consolidated
Revenue$5.0B
Net income$212M
Net margin4.2%
  1. 1989Yoshihiro Yasui launches “selection and concentration” on information equipment
  2. 1992FAX-600 — a $399 design sweeps the US fax market
  3. 1995First small laser multifunction machine
  4. 1999Sales company absorbed, ending a 58-year mfg/sales split
  5. 2003Highest profit in nineteen years

In February 1989 Yoshihiro Yasui, a grandson of the founding family, became the eighth president and set up a “21st Century Committee” of age-banded teams to argue what Brother should become; the thirties team’s answer, close to creative destruction, was to quit appliances and concentrate on information equipment. He chose that path. The transformation was built on a run of failures — a software vending machine (“Takeru”) and a colour copier both flopped, leaving only fax, which as a latecomer could sell at first only as an OEM supply.

What made the shift possible was a refusal to punish failure and a habit of growing new businesses under the president’s own wing, turning each defeat into the seed of the next product. Brother nearly retreated from office equipment before its image-systems division rescued it in 1992 with the FAX-600: against a US mainstream price of $799, market research found demand at the low end, so Brother designed backward from $399 and reached volume through contract production in Shenzhen. It swept the US fax market, and led on to a small laser multifunction machine — fax, printer, copier and scanner in one — in 1995 and a colour inkjet MFP in 1997.

The reinvention also meant clearing an old structural debt. In April 1999 Brother rescued and fully absorbed its long-separate sales company, ending a manufacturing/sales split that had run since 1941 — but inheriting some $557.8M (¥64bn) of its interest-bearing debt. Governance reforms followed in 2000, and under the 2002 “Global Vision 21” (a $8.0B (¥1tn) sales goal) a booming SOHO inkjet business in America drove Brother to its highest profit in nineteen years in fiscal 2003, finally shedding the “products made by a sewing-machine company” label.

Read the full history in Japanese →


2007A global small-precision-machine maker

Revenue (¥ bn, bars) · net margin (%, line)
Source: securities reports & corporate yearbooks
FY2007 · consolidated
Revenue$4.8B
Net income$245M
Net margin5.1%
FY2026 · consolidated
Revenue$5.6B
Net income$427M
Net margin7.6%
  1. 2007Toshikazu Koike becomes president (to 2018)
  2. 2013Nissei consolidated — industrial parts
  3. 2015Domino Printing Sciences acquired for $1.6B (¥193bn)
  4. 2021Domino goodwill written down by $247.8M (¥27bn)
  5. 2022“At your side 2030”; move to the Prime Market
  6. 2024Kazufumi Ikeda becomes president; machine-tool output begins in India

Under Toshikazu Koike, president for eleven years from 2007, Brother settled into a self-description — a “Japan-born global maker of small precision machines” — and spread production beyond China into Vietnam and beyond; in 2006 it even shifted its stock classification from machinery to electrical equipment to match what it had become. But its main line, the home printer, faced a maturing market, and the old reflex asserted itself: secure the next pillar before the current one fades.

In 2015 Brother made the largest acquisition in its history, buying the British industrial-printing maker Domino Printing Sciences for $1.6B (¥193bn) — a European food-packaging printer earning roughly 20% operating margins — as a hedge against the decline of the home-printer market and the promised route to the Global Vision 21 goal. The bet did not pay as modelled: under Ichiro Sasaki, president from 2018, Brother wrote down $247.8M (¥27bn) of Domino’s $679.5M (¥75bn) goodwill in fiscal 2020, as business cycles and currency swings kept it short of plan. The pandemic then swung the other way, lifting home-printer demand on remote work even as commercial multifunction machines, industrial sewing machines and Domino slumped.

The company has spent the years since restructuring around that lesson. It fully absorbed the industrial-parts maker Nissei in 2022, moved to the Prime Market, and launched the “At your side 2030” vision — shifting its main force from single consumer printers to the whole P&S business of commercial multifunction machines, scanners and label printers. In 2024 Kazufumi Ikeda, a fourth straight president raised in the US operations, took over; fiscal 2025 brought the highest results in Brother’s history and, that December, machine-tool production began in India. Brother enters its next plan stronger than ever — with the standing task of binding a portfolio widened by acquisition back into a single, durable base of earnings.

Read the full history in Japanese →


Key decisions — the author’s view

Revenue (¥ bn) · net margin % · around FY1989

Reinventing from sewing machines and typewriters into information equipment (1989)

The choice not to punish failure

The heart of this decision lies not in responding to a financial crisis but in carrying out a transformation tantamount to abandoning the founding trade — and doing so not through the dramatic instruments of acquisition or divestiture, but through the patient machinery of a stance that does not punish failure and of new businesses cultivated directly under the president. Just as the failure of the “Takeru” software vending machine gave rise to network karaoke, and the failure of a mobile printer gave rise to the home multifunction machine, Brother built a cycle that turns defeat into the seed of the next product. To the established divisions a new business is a “devourer of people and money,” and left alone it will not grow. It was precisely because the president fenced each one off and raised it with people and funds attached — Yasui’s way — that a long-established maker could replace its own mainstay.

The turn was not achieved in a single breath, however. More than a decade passed between office machines overtaking sewing machines and information and communication equipment becoming the settled mainstay, accompanied by the debt shouldered in dissolving the manufacturing/sales split and by the trial and error of a fax and multifunction business that struggled to get off the ground. Even so, what made the metamorphosis possible was a leader who would not rest on a thriving founding trade and who kept waving the flag, scooping up the failures and frustrations of the shop floor. How to keep the body heat of an organisation that tolerates failure and carries it on to the next thing — rather than reaching for scale or a flashy stroke — Brother’s transformation can be read as a case that gave that question a patient answer.

Each heading links to the full Japanese analysis — background, decision and outcome, with sources.


References & sources

This is a condensed English edition. The full, source-by-source history — with the detailed narrative, financial tables, shareholders and executives — is maintained in Japanese: 日本語版(詳細)— Brother Industries full history in Japanese →

  1. Brother Industries — 有価証券報告書 (annual securities reports), including the corporate history (沿革) and consolidated financial statements.
  2. Brother Industries — FY2024 earnings materials (決算情報), March 2025.
  3. Nikkei Business — 日経ビジネス (Nikkei BP), 7 April 2003: editor-in-chief interview with Yoshihiro Yasui, Failure Always Turns into Success (失敗は必ず成功に変わる).

Yen amounts are converted at the average rate of each figure’s own year — not today’s rate; revenue charts are shown in yen. Exchange rates & sources — the full ¥/US$ table →