Yamaha’s motorcycle business took a step backwards in 2016, according to its full-year corporate results. BDN financial editor Roger Willis reports that global bike sales volume fell by 1.2% to 5.154 million units. Resultant revenue was 9.9% down at £6.6bn — representing 61.9% of Yamaha group turnover, compared with 63.3% in the previous year. Associated operating profit dropped by 8.1% to £255.1m.
European sales were fairly static, sliding marginally by 0.5% to 208,000 units on the back of late-season stock shortages. But revenue from Europe sank by 6.1% to £907.2m. North American sales and revenue respectively dropped by 13.5% to 77,000 units and 22.7% to £396.5m. In both cases, adverse currency translation had a significant impact. Japanese volume was dead flat on 110,000 units but produced a slight 1.5% revenue increase to £333.4m.
The emerging world was mixed. Asian volume grew by just 0.5% to 4.307 million units. The company made gains in India, Vietnam and the Philippines, against losses in China and Indonesia. Overall revenue from Asia was 7.8% down at £4.11bn. Other regions, dominated by Brazil, saw volume fall by 13.7% to 452,000 units and revenue lose 19.7% to £849.6m.
Although it claimed a rise in retail ATV sales, Yamaha’s power products division had been reducing inventory and therefore wholesale shipments. With negative currency exchange also an issue, its annual revenue was 10.1% down at £1.08bn. Operating profit plummeted by 71.8% to a mere £32m.
For the Yamaha group as a whole, revenue was 7.9% down at £10.66bn. Operating profit decreased by 16.7% to £770.4m. However, net profit actually rose by 5.2% to £448m.   Â