Summary of Consolidated Business Results for the First Quarter of the Fiscal Year Ending December 31, 2014
May 13, 2014
Consolidated business results for the first quarter
IWATA, May 13, 2014 – Yamaha Motor Co., Ltd. (Tokyo: 7272) announces Net sales for Yamaha Motor Co., Ltd.'s consolidated accounting period for the first quarter of the fiscal year ending December 31, 2014 were 358.7 billion yen, an increase of 31.1 billion yen (+9.5%) compared on the same quarter the previous fiscal year. Thanks to the sales increase of motorcycles and outboard motors for the developing countries as well as industrial machinery, robot products and electrically power-assisted bicycles, unit sales and income have increased in all business segments.
In terms of the operating income, thanks to the increase in income from the increase in sales principally from motorcycles and marine products in developed markets, as well as further cost reductions, operating income increased by 8.2 billion yen over the previous fiscal year (+59.0%) to 22.1 billion yen. In addition, ordinary income was 22.9 billion yen (an increase of 9.6 billion yen/+71.4% against the same period the previous fiscal year), and net income for the period was 14.7 billion yen (an increase of 7.3 billion yen/98.4%).
For the first quarter consolidated accounting period, the U.S. dollar traded at 103 yen (a depreciation of 11 yen from the same quarter the previous fiscal year), and the euro at 141 yen (a depreciation of 19 yen).
Results by business segment
Global net sales of motorcycle products were 225.5 billion yen (an increase of 6.0 billion yen/+2.7% compared with the same period in the previous fiscal year), and operating income was 3.8 billion yen (an increase of 0.8 billion yen/27.4%).
Unit sales in developed markets have increased from the same period in the previous fiscal year thanks to the effects of new products such as BOLT, the MT series, and Majesty S.
Unit sales in emerging markets decreased overall. The introduction of new products such as the Cygnus α in India and the YS150 and XTZ150S in Brazil led to increased sales. Demand and sales in Indonesia stayed at a level similar to that of the previous fiscal year, while an economic slowdown resulted in decreased demand in Vietnam and Thailand, leading to decreased sales in these markets.
Operating income has increased despite the reduction in income due to currency depreciation in some emerging markets and the reduction in unit sales in Vietnam and Thailand; this was absorbed by an increase in unit sales in developed markets as well as India and Brazil, in addition to the effects of the depreciation of the yen against developed-market currencies, and cost reductions etc.
Net sales of the marine segment increased overall by 12.0 billion yen/20.3% from the previous fiscal year to 71.1 billion yen, and operating income increased by 3.1 billion yen/29.7% from the previous fiscal year to 13.4 billion yen.
The solid U.S. market, an increase in sales ratio of large outboard models, and increase in sales of peripheral equipment etc. such as the Helm Master (a fully integrated boat control system), led to increased sales and income overall.
Net sales of power products were 29.9 billion yen (an increase of 5.7 billion yen/23.5% compared with the same period the previous fiscal year), and operating income was 1.2 billion yen (an increase of 1.9 billion yen compared with the same period the previous fiscal year).
Sales increased thanks to the launch of the new recreational off-highway vehicle VIKING in North America, and a sales increase of golf cars in Japan also led to an increase in sales and income.
Industrial Machinery & Robot Products
Net sales of the industrial machinery and robots business overall increased by 3.5 billion yen/+58.1% from the previous fiscal year to 9.6 billion yen, and operating income increased by 1.5 billion yen/659.9% from the previous fiscal year, to 1.8 billion yen.
Increases in sales and income were achieved thanks to a significant increase in surface mounter sales, aided by the recovery of equipment investment demands in Asia.
Net sales of other products business overall increased by 3.9 billion yen/20.8% from the previous fiscal year to 22.5 billion yen, and operating income increased by 0.9 billion yen/86.6% from the previous fiscal year, to 1.9 billion yen.
Unit sales of electrically power-assisted bicycles have significantly increased overall, thanks to a significant sales increase in Japan, as well as the start of full-scale export of the E-Kit drive system to Europe.
Forecast of consolidated business results
Regarding the anticipated consolidated business results for the fiscal year ending December 31, 2014, no changes have been made to the forecasts that were presented in the previous fiscal year report on February 12, namely 1.5 trillion yen in net sales, 75.0 billion yen in operating income, 77.0 billion yen in ordinary income and 45.0 billion yen in net income for the fiscal year.
The figures stated here are based on the assumption that the U.S. dollar will trade at 100 yen during the period (a depreciation of two yen based on the ratio seen in fiscal 2013), and the euro at 135 yen (a depreciation of five yen based on 2013 figures).