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WEAKER START FOR KAWASAKI

The motorcycle division of Kawasaki Heavy Industries has begun its new fiscal year on the back foot, with both turnover and shipment volume lower in the first quarter to 30 June. BDN financial editor Roger Willis reports.

Q1 revenue dropped by 7.3% to £517.2m. But an operating loss of £21.6m was actually an improvement on the £25m loss incurred in the same period a year earlier. Operating margin was minus 4.1%. Not much should be read into these latter figures, though. The division employs somewhat peculiar seasonally-geared accounting practices, traditionally front-loading expenses to create losses in Q1 and Q2, hitting break-even in Q3 and then hopefully moves into an annual profit in Q4.

Global wholesale shipments to distributors and dealers were 8.3% down to about 110,000 units — encompassing motorcycle, ATV, UTV and PWC products. Bike volume destined for developed countries, predominantly in Europe and North America, fell by 14.3% to around 30,000. Related revenue was reduced by 10.9% to £198.3m. Volume in emerging markets was 2.8% lower at 69,000 but revenue held station on £124.2m. ATV, UTV and PWC numbers combined sank by 21.4% to 11,000, with revenue falling by 13.1% to £100.8m. Turnover from general-purpose petrol engines was 1.6% in arrears at £93.9m.  

 
 

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