Although investors on the Tokyo Stock Exchange seem to hate the proposition, good times continue to roll for the Kawasaki Heavy Industries motorcycle division during its 2021/22 fiscal year. BDN financial editor Roger Willis reports.
Total nine-monthly revenue to 31 December was a muscular 37.3% up to £1.99bn. Turnover from motorcycles destined for the developed world climbed by 52% to £719m. Bikes for emerging markets brought in £468m, a superior 62.5% increase. Powersports kit — UTVs, ATVs and personal watercraft — put on a more modest 3.7% to £483m. General-purpose petrol engines added 43.8% to £319m.Â
Resultant operating profit for the three quarters of Kawasaki’s fiscal year to date rose by an extraordinary 476.3% to £191m, eclipsing miniscule Covid-afflicted earnings before interest and tax of a mere £12m in the previous year’s equivalent period.Â
A possible reason for investors sniffing at this achievement was refusal by the division to uprate its full-year revenue forecast from the figure mooted at the end of Q2 last September — on the basis that parts shortages and logistics bottlenecks haven’t gone away. This estimate of a 30.7% improvement to £2.83bn stands unmolested. However, predicted annual operating profit has been elevated, from £199m to £257m.
Wholesale motorcycle shipment volume worldwide in the year to date has risen by 37.8% to 332,000. Developed markets raced ahead, 50.5% higher at 137,000. The US, where Kawasaki sells a lot of dirtbikes, topped the pile — 93.1% up to 56,000. Europe followed, improving by 21.6% to 45,000. Japan stacked on 66.7% to 20,000. Australia was 28.6% up to 9000.
Emerging countries accounted for 195,000, a 30% increase. The Phiippines was biggest player, 9.3% up to 106,000. Indonesia put on 72.2% to 31,000. China boasted an 87.5% gain to 30,000. Brazil was 33.3% up to 8000, while Thailand flatlined on 5000.
The aforementioned powersports sector dropped slightly, 5.2% down to 55,000 assorted units.
Yen-sterling currency translation at forex rates applicable on 7 February