Like all of its Japanese commercial compatriots, Yamaha is being hammered by an inability to cope with the yen’s significant appreciation in export markets, reports BDN financial editor Roger Willis.
Yamaha’s nine-monthly 2016 results to 30 September show overall revenue dropped by 7.6% to £8.92bn. Operating profit was 15.3% down at £700.1m and net profit fell by 1.6% to £379.8m.
Revenue from motorcycles, which accounted for nearly two-thirds of total turnover, declined by 10.8% to £5.51bn, even though global bike sales volume was only 1.7% down at 3.818 million units. Associated operating profit sank by 14.3% to £225m.
Volume in Europe during the period actually rose by 1.8% to 173,000 units. But repatriated revenue from them was 4.3% down at £845.3m due to negative currency translation. North America suffered a 16.2 % volume reduction to 57,000 units, owing to wholesale shipment cuts to deal with an excess inventory hangover from 2015. And revenue there plunged by 22.6% to £338.7m once impact of the US dollar’s strength was added in.
The sole positively performing developed market was Japan — where products are priced in yen. Domestic volume was 2.4% up to 86,000 units, delivering a 1.8% revenue improvment at £286.5m.
In the emerging world, Asia was essentially flat with growth in India, Vietnam and the Philippines offsetting poor Indonesian sales. Volume was just 0.1% down at 3.167 million units. However, revenue fell by 8.6% to £3.36bn. But an ongoing Latin American slump led by Brazil saw volume in other regions 15% in arrears on 335,000 units and revenue 24.6% down at £679.6m.