Yamaha Motor earnings up solidly in first quarter - Profits rise in all major product categories

May 10, 2018

IWATA, May 10, 2018 - Yamaha Motor Co., Ltd. (Tokyo:7272) announces consolidated business results for the first quarter.
Net sales for Yamaha Motor Co., Ltd.'s consolidated accounting period for the first quarter of the fiscal year ending December 31, 2018 were 405.6 billion yen, (an increase of 19.5 billion yen or 5.1% compared with the same period the previous fiscal year), and operating income was 41.2 billion yen (an increase of 3.9 billion yen or 10.5%).
Profitability improvements continued in the emerging markets motorcycle, marine, and industrial machinery and robots businesses, absorbing the effect of the appreciating yen, and leading to increased sales and income.
Ordinary income was 40.1 billion yen (a decrease of 0.7 billion yen or 1.7% against the same period the previous fiscal year), and net income for the quarter attributable to parent company shareholders was 32.4 billion yen (an increase of 0.6 billion yen or 2.0%).
For the first three months consolidated accounting period, the U.S. dollar traded at 108 yen (an appreciation of 6 yen from the same period the previous fiscal year), and the euro at 133 yen (a depreciation of 12 yen).

Results by Business Segment

Motorcycles

Net sales were 241.2 billion yen (an increase of 8.7 billion yen or 3.7% compared with the same period the previous fiscal year), and operating income was 14.5 billion yen (an increase of 0.6 billion yen or 4.3%).
Unit sales in developed markets decreased due to factors such as a decline in total demand and irregular weather in Europe. Unit sales in emerging markets such as Indonesia, the Philippines, and Brazil increased, but decreased in the Vietnamese market etc.
Net sales decreased in developed markets due to an appreciation of the yen and lower unit sales, whereas net sales increased in emerging markets thanks to increases in unit sales. In terms of operating income, high profitability was maintained in the ASEAN region, helping to increase income, but, due to decreased income in developed markets etc., operating income overall was on par with the same period the previous fiscal year.

Marine

Net sales were 91.5 billion yen (an increase of 5.1 billion yen or 5.9% compared with the same period the previous fiscal year), and operating income was 20.3 billion yen (an increase of 2.3 billion yen or 12.8%).
Increases in unit sales - driven in particular by water vehicles in North America - absorbed the effect of the appreciating yen, leading to increased sales and income.

Power Products

Net sales were 35.9 billion yen (an increase of 2.2 billion yen or 6.5% compared with the same period the previous fiscal year), and operating income was 0.9 billion yen (an increase of 0.2 billion yen or 37.5%).
Increases in unit sales of multi-purpose engines, golf cars, etc. led to increased sales and income.

Industrial Machinery & Robot Products

Net sales were 16.3 billion yen (an increase of 4.1 billion yen or 33.2% compared with the same period the previous fiscal year), and operating income was 4.2 billion yen (an increase of 2.3 billion yen or 115.2%).
Increases in sales and income were achieved thanks to an increase in surface mounter and robot unit sales, which were enabled by the new factory becoming fully operational and expanding supply capacity.

Other Products

Net sales were 20.7 billion yen (a decrease of 0.4 billion yen or 2.1% compared with the same period the previous fiscal year), and operating income was 1.2 billion yen (a decrease of 1.5 billion yen or 56.3%).
Sales and income decreased due to the deterioration of the electrically power assisted bicycles product mix etc.

Forecast of consolidated business results

Regarding the anticipated consolidated business results for the fiscal year ending December 31, 2018, no changes have been made to the current forecasts that were announced with the previous full-year business results on February 13, 2018, namely 1,700.0 billion yen in net sales, 150.0 billion yen in operating income, 155.0 billion yen in ordinary income, and 103.0 billion yen in net income for the fiscal year attributable to parent company shareholders.
These figures are based on unchanged currency rate forecasts, being the U.S. dollar trading at 105 yen during the fiscal year (an appreciation of 7 yen compared with the same period the previous fiscal year), and the euro at 130 yen (a depreciation of 3 yen).