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KAWASAKI: GREEN SHOOTS OF SUCCESS

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. 

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. 

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

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