Yamaha Motor Co., Ltd. (the "Company") announced
its consolidated business results for the fiscal year ended
December 31, 2008 (fiscal 2008). Net sales decreased 8.7
percent from the previous year, to 1,603.9 billion yen, operating
income fell 61.9 percent, to 48.4 billion yen, ordinary income
dropped 58.0 percent, to 58.9 billion yen, and net income
declined 97.4 percent, to 1.9 billion yen.
On the foreign exchange front, the average
exchange rate of the yen against the U.S. dollar during
fiscal 2008 appreciated by 15 yen from the previous year,
to 103 yen, and appreciated by eight yen against the euro,
to 153 yen.
Reflecting these results, the Company will
propose the payment of 25.50 yen per share of common stock
as the annual cash dividends for fiscal 2008 at the Ordinary
General Meeting of Shareholders.
Broken down by business segment, motorcycle
sales, which had been decreasing in advanced nations, particularly
in Europe and the United States, has seen still more rapid
deceleration beginning in the fourth quarter of fiscal 2008.
Motorcycle sales, which had been robust in Southeast Asia
and Latin America until the third quarter, have also turned
downward since the fourth quarter. In total, motorcycle sales
dipped 2.6 percent, to 1,028.8 billion yen. Marine product
sales fell 17.6 percent, to 238.8 billion yen, due mainly
to significant sales declines for outboard motors and personal
watercraft in the United States. Power product sales dropped
19.7 percent, to 213.3 billion yen, reflecting substantial
sales decreases for all-terrain vehicles and other power
products in the United States. Sales in the "other products" segment
decreased 15.2 percent, to 123.0 billion yen, due principally
to reduced surface mounter sales.
Meanwhile, operating income from the motorcycle
business, marine product business, power product business
and the "other products" business dropped 46.7 percent from
the previous year, to 33.6 billion yen; 78.5 percent, to
6.1 billion yen; 83.9 percent, to 3.6 billion yen; and 62.1
percent, to 5.1 billion yen; respectively.
Positive factors affecting operating income were a decrease in selling, general and administrative expenses totaling 20.4 billion yen from the previous year; cost reductions in procurement operations totaling 11.7 billion yen; an increase in gross profit totaling 2.1 billion yen; and a decline in research and development expenses totaling 0.2 billion yen. However, these positive factors were more than offset by the negative impact of exchange rate fluctuations totaling 54.4 billion yen; hikes in raw material prices totaling 16.7 billion yen; an increase in depreciation expenses totaling 4.7 billion yen; and the negative impact of a change in the product mix and related factors, including production cutbacks in Japan, which totaled 37.2 billion yen.
The number of consolidated subsidiaries at the end of the fiscal year under review increased by two from the end of the previous year, to 113, while the number of companies accounted for by the equity method decreased by five, to 33.
The Company's business conditions for the fiscal year ending December 31, 2009 (fiscal 2009) are expected to remain extremely harsh, reflecting significant further declines in demand amid the worldwide recession, coupled with the continuing strength of the yen against major currencies.
In this environment, the Company will focus on countermeasures including urgent expense reduction and urgent cost reduction projects, significant reduction of capital expenditures, and medium-term structural reforms.
Reflecting these anticipated developments, the Company forecasts its consolidated business results for fiscal 2009 as follows: 1,250.0 billon yen in net sales; 30.0 billion yen in operating loss; 29.0 billion yen in ordinary loss; and 42.0 billion yen in net loss.
These forecasts are based on the assumption that the U.S. dollar will trade at 90 yen during the period (an appreciation of 13 yen from fiscal 2008), and the euro at 120 yen (an appreciation of 33 yen from fiscal 2008).
Based on projected financial performance for foreseeable future, the Company plans to announce its cash dividends for fiscal 2009 at the same time it discloses the consolidated business results for the second quarter of fiscal 2009.