Yamaha posts record profits
November 13, 2006
Filed under Features
Yamaha Motor Co. achieved record-breaking profits during the past nine months on the back of strong motorcycle and marine sales coupled with a weaker yen.
Yamaha posted net income of 59.6 billion yen ($507 million) for the nine months ended Sept. 30, up 11.3 percent compared to 53.6 billion yen during the same nine months in 2005. Net sales for the recently ended nine-month period totaled 1.175 trillion yen ($10 billion), up 17.4 percent from net sales of 1.001 trillion yen during the same period last year.
Higher sales of motorcycles and marine products increased Yamaha’s operating income 11.5 percent year-on-year to 90.07 billion yen ($767 million), while foreign exchange gains from a weaker yen boosted operating profit 17.5 percent to 94.7 billion yen ($806 million).
Yamaha Motor sold 3.29 million two-wheelers worth 693.1 billion yen ($5.9 billion) during the nine-month period, up from 1.8 million units worth 556.6 billion yen sold during the same nine months of 2005. Operating income from the motorcycle business totaled 38.4 billion yen ($327 million), up 28.2 percent from the previous same period.
Motorcycle sales in North America totaled 151,000 units worth 107 billion yen ($911 million), down in volume from 166,000 units but up in value from 94.3 billion yen. In Asia, excluding Japan, the company sold 2.4 million units worth 285 billion yen ($2.4 billion), up from sales of 1.93 million units worth 207 billion yen during the same nine-month period last year.
Yamaha’s marine product sales were greatest in the United States where sales for the nine months under review totaled 106.5 billion yen ($907 million), up from 101.6 billion during the comparable period of 2005.
Sales of power products — including ATVs — totaled 167.2 billion yen ($1.4 billion), up 8.6 percent from 154 billion yen during the previous same period. Power product operating income reached 16.4 billion yen ($139 million), down 6.8 percent from the previous same period.
Yamaha said the gain in net business from power products came from a significant expansion of side-by-side vehicles in the United States that was subsequently tempered by decreased sales of ATVs. The company’s power products sales in North America totaled 122.3 billion yen ($1.04 billion), up 10.9 percent from sales of 110.2 billion yen during the first nine months of 2005. Yamaha’s full-year forecast remains unchanged. The company expects net income of 76 billion yen ($647 million) on sales of 1.52 trillion yen ($12.9 billion) for the year ending Dec. 31.