Wednesday, November 29, 2023
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Kawasaki still in the red

Kawasaki Heavy Industries’ results for the nine months of its current financial year to 31 December 2012 show that the performance of its motorcycle and engine division has improved — but it is still losing money.

Global sales revenue from bikes and ATVs for the three quarters to date has risen by 2.8 per cent to £1.09bn. But the division posted an operating loss of £13.8m. This is nevertheless considerably better than the £31.4m operating loss it incurred in the same period last year.

KHI as a whole isn’t in particularly good shape, either. Total revenue has dropped by 2.3 per cent to £6.07bn. Operating profit is down by 51.5 per cent at £157.2m. Net profit has shrunk by 42.6 per cent to £132.6m.

However, Kawasaki’s share price remained remarkably unaffected following this results announcement because the group also raised its full-year operating profit forecast to around £275m. Given the seasonal nature of the motorcycle business, that division should also strengthen its position with a shipment surge in the first three months of this year.

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