Yamaha’s results for the first half of its financial year to 30 June benefited principally from the weaker yen boosting repatriated revenue and profit. But the company’s core motorcycle division underperformed the rest of the business.
Global net sales revenue from bikes during this six-month period rose by 12.6 per cent to £3.09bn. Nevertheless, total operating profit from the sector fell by 19.4 per cent to just £24m.
Across developed markets, motorcycle sales were up in Japan and also grew in North America during the second quarter. Europe was a different story, with a fall in volume owing to the difficult economic situation plus increased development, promotional and restructuring costs dragging combined income into decline.
Emerging markets delivered a mixed performance. Indian sales were particularly strong and Indonesia recovered in the second quarter. But Thailand, Vietnam and Brazil suffered declining sales, again blamed on economic woes, in those countries. However, although overall volume was down, favourable foreign exchange translation thanks to the yen’s depreciation and cost reductions meant revenue and profit improved.
ATV sales by the power products division, mainly in the USA, were also down. But growth in golf carts and snowmobiles, along with yen depreciation, more than absorbed that retreat, resulting in a 9.4 per cent divisional revenue growth to £331m and an operating profit rise of 67.7 per cent to £2.7m.
For Yamaha as a whole, half-yearly revenue climbed by 11.2 per cent to £4.65bn. Operating profit was up by 45.3 per cent to £200m. Net profit rose by 40.8 per cent to £136m.