Yamaha Motor’s net sales, operating income, recurring profit and net income on a consolidated basis for the first quarter of the fiscal year ending December 31, 2006 totaled 398.9 billion yen, 37.0 billion yen, 37.4 billion yen and 28.1 billion yen, respectively. The Company has achieved record highs in net sales and profits on a quarterly basis, registering its best performance since it began announcing quarter-term business results in the fiscal year ended March 31, 2004.
Compared with the results for the previous first quarter, net sales, operating income, recurring profit and net income for the first quarter ended March 31, 2006 all rose significantly: by 21.5 percent, 14.1 percent, 15.3 percent and 22.2 percent, respectively. On the foreign exchange front, the average purchasing value of the yen depreciated by nine yen against the U.S. dollar during the term compared to the value in the previous first quarter, to 114 yen, and dropped by one yen against the euro from the previous same period, to 137 yen.
Sales grew in all business segments. Motorcycle sales totaled 240.5 billion yen -- up 31.4 percent from the previous first quarter -- due mainly to robust sales in ASEAN countries such as Indonesia, Thailand and Vietnam. Marine product sales amounted to 69.4 billion yen -- up 9.6 percent from the previous first quarter -- led by sales expansion for outboard motors and personal watercraft in the United States. Power product sales were 51.8 billion yen -- up 14.4 percent from the previous first quarter -- reflecting favorable sales of side-by-side vehicles in North America. Sales in the “other products” segment reached 37.2 billion yen, up 1.5 percent from the previous first quarter.
With regard to operating income by business segment, in
the motorcycle business, operating income reached 16.2 billion
yen, up 4.4 percent from the previous first quarter. Operating income
the marine product business amounted to 9.7 billion yen, up 37.1
percent from the previous first quarter. In the power product business,
income reached 5.9 billion yen -- up 29.9 percent from the previous
first quarter -- while operating income from the “other products” business
was 5.2 billion yen, down 1.6 percent from the previous first
quarter. Major factors impacting the operating income include an increase
selling, general and administrative expenses totaling 12.8 billion
yen from the previous first quarter; hikes in raw material prices and
negative impact resulting from a change in the product mix and
related factors, which together were 7.3 billion yen greater than the
first quarter; an increase in gross profit due to sales expansion,
amounting to 11.2 billion yen from the previous first quarter; cost
totaling 2.2 billion yen from the previous first quarter; and
a positive impact on exchange translation amounting to 11.3 billion
yen. All these
factors combined to send consolidated operating income during
the period under review to a record high on a quarterly basis.
During the period, the Company reclassified OOO Yamaha Motor CIS in Russia and other group companies as consolidated subsidiaries. Consequently, the number of consolidated subsidiaries stood at 110, an increase of 12 from the end of the previous fiscal year, while the number of companies accounted for by the equity method was 45, a decrease of six from the end of the previous fiscal year.
In the forecast of business results for the fiscal year ending December 31, 2006, the Company expects 760 billion yen in net sales, 60 billion yen in operating income, 60 billion yen in recurring profit and 35 billion yen in net income for the interim period, and for the full year, 1,450 billion yen in net sales, 115 billion yen in operating income, 115 billion yen in recurring profit and 65 billion yen in net income. These figures are the same as the targets officially announced on February 7, 2006.
These business performance forecasts are based on the assumption that one U.S. dollar will trade at 112 yen during the full year (a depreciation of five yen from the previous year), and one euro will equal 136 yen (the same as the previous fiscal year).