Japanese motorcycle, boats and motor manufacturer, Yamaha Motor has announced its results for the current consolidated accounting year. The company reported revenue of 1,700 billion yen (Rs 108,800 crore), an increase of 26.9 billion yen (Rs 1,721 crore), an increase of 1.6 percent compared to the previous fiscal year.
The company's operating profit was 140.8 billion yen (Rs 9,011 crore), a decrease of 9 billion yen (Rs 576 crore) (6.0%). While, Yamaha Motor saw its net sales saw increase in the marine, power products, industrial machinery and robots, and other segments, a decrease in the motorcycle business lead to a result at the same level as the previous fiscal year.
The company says in terms of operating income the profitability improvements increased thanks to the effect of sales increases in the marine business and industrial machinery & robots segment, as well as from development and manufacturing methods of platform models and global models in the motorcycle business segment.
However a decline in income resulted as it was unable to fully absorb losses from less net sales in the motorcycle business in developed markets, foreign exchange losses and rising raw materials costs centred on developing markets.
Targeting sales from ASEAN region and India
The company's motorcycle business saw net sales at 1,022.2 billion yen (Rs 65,420 crore) (a decrease of 23.0 billion yen (Rs 1,472 crore) or 2.2 percent compared with the previous fiscal year), and operating income was 54.5 billion yen (Rs 3,488 crore) (a decrease of 14.3 billion yen or 20.8%).
Yamaha Motor saw sales improving in emerging markets such as the Philippines, Indonesia, and Brazil increased, but the sales dropped in developed markets such as Vietnam, and Taiwan. As a result, overall unit sales were 5.37 million (-0.3% YoY) resulting in lower sales and income.
The Japanese major says it will boost profitability by strengthening sales of high-priced products in the ASEAN region as well as bolstering sports models in India. In developed markets, the company is promoting structural reforms in manufacturing and sales functions.
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