Yamaha’s full-year financial results to 31 December 2012 reveal that the company has slid back into a loss-making position on its core motorcycle operations and struggled to make a profit for the business as a whole.
During this 12-month period, global Yamaha motorcycle sales volume fell by 12.8 per cent to 6.09 million units — some 892,000 fewer units than in the previous year. Declines in Europe, Indonesia, Vietnam and Brazil were only partially countered by improvements in India, Thailand and the US market.
Related revenue was down by ten per cent to £5.5bn, resulting in a marginal annual operating loss on bikes of £1.4m. That compares with a 2011 operating profit from the motorcycle sector worth £190m, based on current foreign exchange translation.
The power products division, which principally produces ATVs (as well as generators and golf buggies), achieved a 3.3 per cent revenue increase to £714m and a slim operating profit of £3.5m. However, it benefited from a £17m reversal of provision for side-by-side ATV product liabilities in the US market and would have also lost money without that income enhancement.
Overall, Yamaha suffered a 5.4 per cent revenue decline to £8.32bn. Operating profit fell by 65.2 per cent to £128.2m. Net profit dropped by 72.2 per cent to £51.6m.
Nevertheless, forecasts for its current 2013 financial year are decidely more optimistic. Yamaha is predicting a 15.9 per cent revenue growth to £9.65bn. Operating profit is expected to recover by 168.8 per cent to £344.6m. And net profit should be up by 273.9 per cent to £193m.