Yamaha’s global motorcycle business continued to decline, according to full-year results for 2019, but its European operations improved. BDN financial editor Roger Willis reports.
Total revenue from the company’s Land Mobility division fell by 1.6% to £7.706bn. Operating profit was 14.1% down at £293m. Within that, turnover directly attributable to motorcycles dropped by 2.5% to £6.851bn. Worldwide sales volume sank by 5.9% to 5.056 million bikes. Improved results from recreational vehicles (ATVs, etc) and E-Kit pedelecs helped to offset deficits eleswhere.
Revenue from developed bike markets was 2.3% lower at £1.56bn. But Europe’s contribution actually grew by 1.1% to £930m, with unit sales 5.7% up to 186,000. North America fell by 6.8% to £296m and volume was 6% down to 63,000. The Japanese domestic market lost 5.9% to £268m on a 5.4% volume reduction to 88,000.
Emerging markets were negative too, 2.5% down to £5.291bn. Asia retreated by 2.5% to £4.564bn and volume dropped by 6.9% to 4.261 million bikes. Gains in Indonesia and the Philippines were more than wiped out by losses in India, Vietnam and Taiwan. Other regions, predominantly Latin America, suffered a 2.6% decline to £727m. Although Brazil recovered, Argentina went the other way.
For Yamaha as a whole, revenue slipped by just 0.5% to £11.658bn. But operating profit shrank by 18.1% to £808m and net profit was 18.9% down to £530m. Significantly, Yamaha’s Marine Products division, which has less than a third of the Land Mobility turnover, delivered a much higher portion of operating profit — £409m. Â
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