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KAWASAKI SLOW OFF THE LINE

During the first quarter of its current fiscal year, the motorcycle division of Kawasaki Heavy Industries delivered an underwhelming performance. BDN financial editor Roger Willis reports.

Revenue in the three months to 30 June fell by 2.2% to £467.2m. That resulted in an operating loss of £22.9m. In the equivalent period last year, Kawasaki made a fairly marginal £2.3m operating profit on bikes.

Wholesale shipment volume of motorcycles into developed markets — primarily the USA and Europe — was stagnant on 34,000 units. But related revenue was 6.5% up to £181m. Bikes sold into the trade across emerging countries in SE Asia and Latin America were 1.5% down to 68,000 units, with revenue falling by 12.6% to £114m. Quadbike and side-by-side ATVs plus PWCs — mainly going to North America — took the biggest hit. Volume dropped by 26.7% to 11,000 units and revenue sank by 21.7% to £85m. However, the contribution from petrol engines produced for other manufacturers was 27.3% up at £87m.

Despite such mixed news, Kawasaki remains optimistic about full-year divisional forecasts to 31 March 2018. It is predicting a 5.4% revenue increase to £2.28bn and operating profit rising by 11.1% to £90m.   
 

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