Consolidated business results for Yamaha
Motor (the “Company”) for the first half-year
ended June 30, 2006 were 812.9 billion yen in net sales,
65.9 billion yen in operating income, 67.6 billion
yen in recurring profit and 44.3 billion yen in net
income. With this performance, the Company registered
record highs for both sales and profits on a half-year
basis.
Compared with the results for the previous
first half-year, net sales, operating income, recurring
profit and net income for the first half-year ended
June 30, 2006 all rose significantly: by 20.1 percent,
16.1 percent, 20.8 percent and 20.2 percent, respectively.
On the foreign exchange front, the average purchasing
value of the yen against the U.S. dollar during the
period under review depreciated by nine yen from
the value in the previous first half-year, to 114
yen, and dropped by two yen against the euro from
the previous same period, to 138 yen.
Broken down by business segment, motorcycle
sales totaled 484.6 billion yen -- up 27.1 percent
from the previous first half-year -- due mainly to
robust sales in ASEAN countries, Europe, the United
States and Latin America. Marine product sales amounted
to 148.0 billion yen -- up 11.1 percent from the
previous first half-year -- reflecting favorable
sales of personal watercraft in the United States
and outboard motors in Europe and the United States.
Power product sales were 104.3 billion yen -- up
12.8 percent from the previous first half-year --
led by a significant sales expansion for side-by-side
vehicles in the United States, although sales for
all-terrain vehicles in the United States decreased
during the period. Sales in the “other products” segment
reached 76.1 billion yen -- up 8.5 percent from the
previous first half-year -- driven by a sales increase
in the IM (Intelligent Machinery) business, consisting
primarily of surface mounters and other industrial
robots. Thus, sales grew in all business segments.
Meanwhile, in terms of profit, operating
income from the motorcycle business totaled 29.2
billion yen, up 23.5 percent from the previous first
half-year. Operating income from the marine product
business amounted to 17.8 billion yen, up 19.4 percent
from the previous first half-year. In the power product
business, operating income reached 9.3 billion yen
-- up 3.7 percent from the previous first half-year
-- while operating income from the “other products” business
was 9.5 billion yen, up 3.7 percent from the previous
first half-year. Major factors affecting operating
income include an increase in selling, general and
administrative expenses totaling 24.0 billion yen
from the previous first half-year; the negative impact
resulting from a change in the product mix and related
factors totaling 10.8 billion yen more than the previous
first half-year; and hikes in raw material prices
of 5.6 billion yen above the previous first half-year.
There was also a positive impact on exchange translation
amounting to 22.9 billion yen; an increase in gross
profit due to sales expansion amounting to 22.6 billion
yen; and cost reductions in procurement operations
totaling 4.0 billion yen, representing improvements
from the previous first half-year. All these factors
combined to send consolidated operating income during
the period under review to a record high on a half-year
basis.
Effective from the period under review,
the Company changed the accounting status of SOQI
H•S Co., Ltd. and other group companies, making
them consolidated subsidiaries. Consequently, the
number of consolidated subsidiaries stood at 111,
an increase of 13 from the previous fiscal year-end,
while the number of companies accounted for by the
equity method was 44, a decrease of seven from the
previous fiscal year-end.
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The Company has revised its forecast
consolidated business results for the full fiscal year
ending December 31, 2006 upward, and now projects net
sales of 1,520 billion yen (a 4.8 percent increase
from the planned target, announced February 7, 2006;
a 10.5 percent increase from the previous fiscal year);
operating income of 123 billion yen (a 7.0 percent
increase from the planned target; a 19.0 percent increase
from the previous fiscal year); recurring profit of
125 billion yen (a 8.7 percent increase from the planned
target; a 21.2 percent increase from the previous fiscal
year); and net income of 76 billion yen (a 16.9 percent
increase from the planned target; a 18.7 percent increase
from the previous fiscal year).
The upward revisions are due to updated expectations
for higher sales than the forecasts announced February
7, 2006 in all business segments, and for higher operating
income than the forecasts for the motorcycle, marine
product and “other products” business segments.
The upwardly revised consolidated business forecasts
for the full fiscal year ending December 31, 2006 exceed
the numerical targets (net sales: 1,450 billion yen;
operating income: 120 billion yen; and recurring profit:
120 billion yen) for the fiscal year ending December
31, 2007 -- the final year of the NEXT50-Phase II medium-term
management plan.
The forecasts are based on the assumption that the U.S. dollar will trade at 113 yen during the period (a depreciation of one yen from the planned figure, announced February 7, 2006), and the euro at 140 yen (a depreciation of four yen from the planned figure).
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In the previous fiscal year, the Company
paid annual dividends of 28 yen per share, including
the 50th anniversary commemorative dividend of five
yen per share. In order to raise dividends and the
payout ratio for the fiscal year ending December 31,
2006, the Company was originally scheduled to pay annual
dividends of 30 yen per share with a 13.2 percent payout
ratio, attaining an increase for the fifth consecutive
year. However, in light of the upward revision of full
fiscal year consolidated business results, the Company
reviewed the scheduled annual dividends and now plans
to pay annual dividends of 35 yen per share, an increase
of five yen from the amount announced February 7, 2006,
and seven yen from the previous fiscal year.
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