Wednesday, June 19, 2024


Nine-monthly financial results for the motorcycle division of Kawasaki Heavy Industries (KHI) reveal improving turnover and earnings, recovering from a loss in the first quarter and thin profits in the second.

Year-on-year, divisional revenue across the three quarters has grown by 2.8% to £1.26bn, comprising 20% of KHI’s total turnover. Associated operating profit is up by 5.9% to £25.3m.

Total sales volume in the period fell by 13.1% to 345,000 units, including motorcycles, quadbike and side-by-side ATVs, and Jet Ski personal watercraft. This fall was attributed to emerging markets, mainly Indonesia.

Developed Western markets featuring higher-value products performed much better. North American sales were up by 10% to 66,000 units. Within that, motorcycles accounted for 32,000 units, rising by 14.3%. European sales rose by 19.4% to 37,000 units.

However, KHI has revised its full-year forecasts to 31 March for the division downwards, in anticipation of negative foreign currency translation impact and increasingly severe competition in emerging markets.

Although the company predicts a 4.8% annual revenue increase to £1.99bn (against a previous estimate of £2.02bn) it now says operating profit will drop by 2.7% to about £80m — instead of rising by 4% to approximately £90m.

Much of Kawasaki’s revenue stream and the majority of profits are skewed towards the final three months of its financial year, as new-season wholesale shipments peak.    


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