According to its full-year results, good times were rolling again for the powersports and engine division of Kawasaki Heavy Industries. But apparently not for much longer. BDN financial editor Roger Willis reports.
Total revenue for the 12 months to 31 March 2023 exceeded estimates, 32% up to £3.498bn. Motorcycles destined for the developed world generated the biggest contribution, a 24.3% increase to £1.25bn — but slightly below forecast. Motorcycles for emerging markets yielded an above-forecast 14.9% rise to £685m. Turnover from utility vehicles, quadbikes and personal watercraft — mainly aimed at US customers — delivered a 47.4% improvement to £949m. A 51.8% boost from general-purpose petrol engines accounted for the rest.
Divisional operating profit almost doubled, growing by 90.7% to £423m. Global wholesale motorcycle shipments rose by 13% to 555,000. The four-wheel and PWC segment shipped a 7.4% volume increase to 87,000 units.
Developed motorcycle markets were 13.9% up to 237,000. Within that, US dealer demand soared by 38.4% to 119,000 and Canada put on 66.7% to 10,000. But European inventory slumped by 5.6% to 67,000. Australia was 8.3% down to 11,000 and Japanese domestic sales fell by 12.9% to 27,000.
Bikes for emerging countries advanced by 12.4% to 318,000. The Philippines were way out in front, adding 29.8% to 209,000. Indonesia and China respectively declined by 4.4% to 43,000 and 18.9% to 30,000. Brazil flatlined on 10,000 and Thailand plunged by 57.1% to just 3000. Some 20,000 went to elsewhere.
Forecasts for Kawasaki’s new fiscal year to 31 March 2024 are considerably less enthralling. The company is planning a reduction of about 7% in the supply of motorcycles to developed countries and a commensurate increase in emerging markets. Unsurprisingly, it predicts this will lead to an approximate 2% drop in annual turnover to £3.432bn and slash operating profit by 34.3% to £278m. Maybe they got Liz Truss in as an adviser to do the growth arithmetic?
On a brighter note, at least Kawasaki is continuing joint research on hydrogen-fuelled internal combustion engines with Toyota, Nippon Denso and four other motorcycle manufacturers.
Yen-Sterling currency translation at forex rates applicable on 14 May.