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Financial

13/02/2018

Full-year 2017 results for Yamaha’s motorcycle business were strong — but heavily dependent on advances in emerging markets led by Asia, BDN financial editor Roger Willis reports.

The brand’s total revenue from bikes increased by 12.4% to £6.99bn. Emerging markets accounted for £5.315bn of that, 16.2% up, with Asian countries achieving a 15.9% rise to £4.492bn. But contributions from the developed world rose by a mere 1.8% to £1.675bn. Europe put on 8.3% to £926m. North America was 5.7% down to £352m and Japan lost 2.1% at £308m.

Overall PTW sector operating profit climbed by 23.7% to £460m. Emerging markets actually rose by a magnificent 60.7% to £492m, thanks to a higher-margin model mix. However, developed nations made an operating loss of £32m, against profit of £66m in the previous year.

Global Yamaha motorcycle and scooter sales volume grew by 4.6% to 5.39 million units. European countries sank by 4.3% to 199,000, North America was 9.1% down on 70,000 and Japan dropped by 6.4% to 103,000. Asia, on the other hand, was 5.8% up to 4.56 million. Within that, Indonesia and China lost a bit of ground but India, Vietnam, Thailand and and Taiwan were all positive. Elsewhere on the emerging scene, Brazil recovered by 12% to 112,000.

For Yamaha as a whole, revenue was 11.1% up at £11.17bn. Operating profit climbed by 37.9% to £1bn and net profit soared by 60.9% to £679m. Its marine division outshone bikes, delivering a £398m operating profit on turnover of £2.17bn.