Although a weak profit forecast for Kawasaki’s Powersports & Engine division is tempered by various factors in three-quarterly results, full-year performance is nevertheless more promising. BDN financial editor Roger Willis reports.
Turnover for the April to December period rose by 3.2% to £2.221bn. The impact of a recall for the Mule Pro 1000 ORV series was usefully offset by an increase in motorcycle sales. However, operating profit fell by 10.3% to £152.8m, owing to revised fixed costs associated with investment for increased production.
Revenue from motorcycles for developed countries grew by 16.7% to £844.4m. Associated wholesale volume was 15.3% up to 151,000 units. Within that, North America put on 33.9% to 79,000 units and Europe improved by 9.5% to 46,000 units. Motorcycle revenue generated in emerging markets reduced slightly, 1.5% down to £386.5m. But wholesale volume increased by 11.8% to 180,000 units. Kawasaki’s biggest emerging market was in the Philippines, delivering a 30.1% rise to 134,000 units.
Revenue from utility vehicles, ORVs, ATVs and personal watercraft, principally driven by activity in North America, suffered a 9.9% decline to £622.9m, with volume dropping by 25.4% to 47,000 units. This was related to the aforementioned ORV recall, recovery from which is progressively anticipated. A further £366.8m came from general-purpose petrol engines.
Full-year volume forecasts predict developed-world motorcycles reaching 260,000 units, emerging-market motorcycles hitting 275,000 units and ORV, ATV and PWC recovery to 80,000 units. Full-year revenue is forecast to increase by 8% to £3.407bn and operating profit will revive during Q4 to flatline on £255.5m.
Yen-sterling currency translation at forex rates applicable on 10 February