Wednesday, June 19, 2024
HomeNEWSFINANCIALTEAM GREEN BOTTOM LINE GOES RED

TEAM GREEN BOTTOM LINE GOES RED

The motorcycle division of Kawasaki Heavy Industries has slumped into losses for a second consecutive quarter during the nine months of its current fiscal year to 31 December 2016, BDN financial editor Roger Willis reports.

Nine-monthly revenue fell by 9.2% to £1.4bn. Decline was primarily due to adverse foreign exchange translation, despite sales volume growth in all major markets. This resulted in an accrued operating loss of £14.4m, against a £30.9m profit in the same period of the previous financial year.

However, Kawasaki’s bike business is seasonal, with a big wholesale shipment surge in the fourth quarter. Full-year revenue to 31 March 2017 is therefore forecast to reach nearly £2.2bn, with a predicted annual operating profit of about £71m.

European sales from the three quarters to date, mainly comprising motorcycles but also including ATVs and personal watercraft, grew by 10.8% to 41,000 units. North America was 9% up to 72,000 units. Within that, motorcycles added 6.3% to 34,000 units. Sales in higher-volume emerging countries, predominantly across South-East Asia, rose by 4.3% to 240,000 units. Total year-to-date volume has increased by 6.4% to 367,000 units. The full-year forecast is 528,000 units, a marginal 0.8% improvement. 

Previous article
Next article
RELATED ARTICLES

Product News

Reaction: The man in the white suit

I started in this stimulating industry as a sales representative for Greeves Motorcycles in January 1964; then after 30 plus years at the coalface,...