Another lamentable half-yearly financial performance from Suzuki Motor Corporation’s motorcycle operations is bound to increase investor concerns about a studied long-term lack of profitability.
Revenue from bikes and ATVs during the first six months of the company’s current fiscal year to 30 September was flat, down by just 0.14% to £660.1m. But that masked a 14.8% decline in global wholesale shipment volume to 528,000 units, ameliorated only by recovery in Europe featuring higher-value products.Â
Every other major market in which Suzuki is represented was down to a greater or lesser extent. Worst affected was Asia, where some growth in India failed to offset rapidly falling sales in Indonesia. Overall volume in that region dropped by 20.1% to 355,000 units. Perhaps surprisingly, North America was also negative, slipping by 15% to 17,000 units. In stark contrast, European countries boasted a 28.6% improvement to 27,000 units with associated revenue climbing by 18.9% to £132.1m.
Bottom-line impact was harsh, delivering an operating loss of £6.5m — against a distinctly more marginal loss of £1.1m in the equivalent period last year. Â