Global motorcycle operations in the first quarter of Suzuki’s new fiscal year to 30 June were a mixed bag. But at least the rejuvenation of its European bike business seems to be on track. BDN financial editor Roger Willis reports.
Total Q1 revenue from the segment rose marginally by 0.2% to £477.4m. But operating profit suffered a 22.4% slump to £35.6m. Quarterly production of motorcycles and ATVs rose by 4.9% to 475,000. However, worldwide unit sales were just 1.5% up to 479,000.
Most impressive turnover contribution in the developed world came from Europe, rising by 30.3% to £82m. In contrast, North America was 20.8% down to £65.2m and the Japanese domestic market yielded £30.2m, a 10.7% reduction. Emerging markets across Asia delivered a fairly minor 2.2% increase at £220.9m. Within that, though, India was 23.1% up to £135.3m.
A unit-sales analysis coloured in the monetary picture. Suzuki’s wholly-owned Indian motorcycle plant at Gurgaon in the State of Haryana not only increased production by 27.8% to 216,000 but also grew sales by 15.4% to 193,000.
Sales in the rest of Asia were 6.4% down to 202,000. China added 2.1% to 123,000 while the Phillipines sank by 14.6% to 41,000. Smaller Asian sources sold 19.8% fewer bikes totalling 38,000. Emerging countries in Latin America were 8.8% lower on 45,000.
Elsewhere, European countries were stars of the show, with combined sales soaring by 33.4% to 13,000 much bigger-ticket bikes. North American sales fell by 9% to 10,000 and Japan lost 12.1% on 12,000.
Suzuki’s full-year forecasts predict annual motorcycle production revised down to 1.5% growth reaching 1.942 million units. Some 121,000 of these will be made in Japan while most of the rest originate in Asia. A mysterious 4000 units are rostered for US assembly.
Worldwide annual sales volume is expected to improve by 3.2% to 1.919 million. Highlights are anticipated 30.1% recovery in Europe, hitting 40,000, and a 20.8% bounce in Japanese domestic sales to 55,000. North America should put on 2.8% at 33,000, Asia is billed to enjoy a 4% gain to 1.589 million. Other unidentified markets are likely to shrivel by 9.5% to 201,000.
Yen-Sterling currency translation at forex rates applicable on 7 August.