The powersports and engine division of Kawasaki Heavy Industries didn’t seem too bothered by a tame opening gambit for its new 2024/25 fiscal year, because some bold forecasts were attached. BDN financial editor Roger Willis reports.
Team Green’s Q1 revenue barely moved, just 0.6% up to £766.3m. An increase in motorcycle shipments was offset by a temporary decline in off-road vehicle sales, due to a US market recall for the Mule Pro 1000 series. This has now apparently been completed. However, quarterly operating profit was shabby, 19.6% down to £61m. Deterioration was blamed on higher fixed costs. Operating margin slipped from 9.9% to 8%.
In the three-month period, turnover from motorcycles destined for developed markets rose by 20% to £323.8m. Significant wholesale shipment volumes were a 4.5% rise to 23,000 units in North America and a 16.7% increase to 21,000 in Europe. Japan’s domestic portion fell by 14.3% to 6000. Total volume was 6% up to 53,000. The fate of “others” referred to Australia, where volume halved to just 1000 units.
Motorcycles for emerging markets yielded a 16.4% turnover improvement to £124m. Related wholesale shipments amounted to 63,000 units, growing by 40%. The Philippines stood out, with volume 62% up to 47,000. Indonesia almost doubled to 7000. Latin America flatlined on 2000. “Others”, named and shamed in a side-bar reference as China and Thailand, took 6000 bikes between them.
Revenue from utility and recreational off-road vehicles, quadbikes and personal water craft — mostly aimed at North America — dropped by 23.6% to £183.9m. Turnover from general-purpose petrol engines was 7% down to £134.6m.
Specific to European operations, the division’s overview commentary said: “The retail market remains strong and our market share is growing, due to recovery of supply capacity and launch of new models.” And on a similarly brighter note, Kawasaki has issued a full-year divisional forecast of revenue surging by 21.5% to £3.816bn and a 41.7% operating profit improvement to £360.4m.
Yen-Sterling currency translation at forex rates applicable on 9 August