IWATA (Yosefard) – Yamaha Motor Co., Ltd. reported its motorcycle business income in emerging markets rose thanks to improvements in product mix and cost reductions.
Strong earnings were achieved despite a fall in net sales value due to unit sales declines in countries including Indonesia and Brazil.
Total consolidated net sales of 778.3 billion yen were down 6.1 percent from the previous year and operating income of 65.4 billion yen was down 10.9 percent. Sales and income in developed markets decreased, largely the result of the appreciated yen.
By segment, unit sales of electrically power assisted bicycles rose in Japan. A significant increase in exports to Europe of E-kits, the drive units for these bicycles, helped the “other products” segment achieve net sales of 37.1 billion yen, up 3.5 percent, and operating income of 2.3 billion yen, up 51.6 percent.
Yamaha Motor is now forecasting full-year net sales of 1,500 billion yen, down 11.8% from the initial forecast, and operation income of 105 billion yen, down 12.5%, primarily due to weaker sales in developed markets due to the strong yen.
Motorcycles are expected to remain favorable in markets such as Vietnam, the Philippines and Taiwan.