In the nine months ended December 31, 2003 (April 1 through December 31, 2003), Yamaha Motor's consolidated business results were as follows: 761.9 billion yen in net sales; 55.2 billion yen in operating income; 55.5 billion yen in recurring profit; and 35.0 billion yen in net income.
On the exchange rate front, during the period (April 1 through December 31, 2003), the yen remained at 117 yen against the U.S. dollar (higher by 7 yen than the same period of the previous year and lower by 1 yen than the projection at the previous fiscal year-end), and was 128 yen against the euro (lower by 10 yen than the same period of the previous year and lower by 1 yen than the projection at the previous fiscal year-end).
Net sales during the period under review decreased slightly - by 0.5 percent - from the same period of the previous year, and were 0.4 percent below the planned target.
The slight decline in net sales was mainly attributable to a 3.1 percent decrease in marine product sales and a 5.1 percent decrease in power product sales from the same period of the previous year. These decreases exceeded the amounts gained by a 1.1 percent increase in motorcycle sales and a 7.2 percent rise in sales in the "other product" segment, which includes the IM (industrial robot) business. Compared with their planned targets, sales declined slightly for motorcycles and marine products, and rose about 3.0 percent for power products.
Broken down by business segment, motorcycle sales rose 1.1 percent from the same period of the previous year, to 401.8 billion yen. The gain owes to growth in Asia for small 4-stroke motorcycles, although sales in Japan and North America fell from the same period of the previous year. Sales of marine products dropped 3.1 percent, to 152.7 billion yen. This was mainly attributable to a decline in sales of outboard motors - mainstay products in this segment - in North America, which was larger than an increase in outboard motor sales in Europe. Sales of power products also declined 5.1 percent from the corresponding period of the previous year, to 141.5 billion yen, due to decreased sales of all-terrain vehicles (ATVs) - mainstay products in this segment - in North America, although ATVs sold well in Europe. Sales in the "other product" segment climbed 7.2 percent, to 65.9 billion yen, thanks to the sales expansion for surface mounters in the mainstay IM business, particularly in Asia and China.
By market, sales in Europe rose 11.1 percent from the same period of the previous year, to 191.1 billion yen. Sales in Asia also increased, by 9.0 percent, to 139.6 billion yen, and sales in other areas climbed 13.0 percent, to 66.4 billion yen. However, sales in Japan dropped 7.2 percent, to 110.5 billion yen, due to the continued sluggish economic conditions, while sales in North America fell 11.7 percent, to 254.3 billion yen, as shipments were adjusted in conjunction with a reduction in motorcycle, outboard motor and ATV inventories. Exchange rate translation also negatively impacted sales in North America.
In terms of profits, operating income, recurring profit and net income all exceeded the planned targets - by 7.6 percent, 9.4 percent, and 7.0 percent, respectively. When compared with the figures for the same period of the previous year, operating income and recurring profit decreased by 8.4 percent and 6.5 percent, respectively; however, net income rose significantly - by 47.1 percent - from the same period of the previous year, due mainly to a gain on the return of the welfare pension fund substitute portion. Note that these percentage figures should only be used as a reference, since the generally accepted accounting method was not applied in the corresponding period of the previous year.
The number of consolidated subsidiaries stood at 98, a decrease of one from the previous fiscal year-end, while the number of affiliates accounted for by the equity method was 40, an increase of three from the previous year-end.
The Company forecast its consolidated business results for fiscal year 2004 ending March 31, 2004 as follows: net sales of 1,020 billion yen, operating income of 71 billion yen, recurring profit of 71 billion yen, and net income of 40 billion yen. All these forecasts are record highs. If the forecasts are met, performance will almost reach the final targets spelled out in the Company's medium-term management plan, NEXT 50 - one year ahead of schedule. Although the Company's net sales for the nine months ended December 31, 2003 were slightly below the planned target, profits exceeded the targets. By continuously implementing NEXT 50, the Company aims to achieve the forecast consolidated business result targets for fiscal year 2004 ending March 31, 2004.
The forecast business results in this summary are based on the assumption that the yen will appreciate by 7 yen against the U.S. dollar, to 116 yen, while depreciating 10 yen against the euro, to 127 yen, during the full-year period.