In the first quarter of the fiscal year ending March 31, 2004, Yamaha Motor's consolidated net sales increased 3.3 percent from the corresponding period of the previous year, to 257.4 billion yen, a performance that exceeded the planned targets by 1.3 percent. Year-on-year ratios entered for the first quarter are provided for reference purposes only.
The sales growth was mainly attributable to a 7.5 percent increase in motorcycle sales and a 4.1 percent rise in sales in the "other product" segment, including the IM (industrial robot) business. These increases more than offset a 3.9 percent decline in marine product sales, while power product sales were almost on a par with the same period of fiscal 2003. Compared with their planned targets, sales rose 2.0 percent for motorcycles, 1.0 percent for marine products, and 5.7 percent for power products.
Broken down by business segment, motorcycle sales rose 7.5 percent from the same period of the previous year, to 140.8 billion yen. The gain owes to expansion overseas, especially in North America and Europe -- where sales of YZF-R6 supersport bikes and other large models steadily grew -- and in Asia, where small four-stroke models sold well. However, motorcycle sales in Japan decreased from the same period of fiscal 2003.
Sales of marine products dropped 3.9 percent, to 53.0 billion yen. This was mainly attributable to the fact that yen-denominated sales for mainstay outboard motors declined in North America, due to the appreciation of the yen against the U.S. dollar during the period, although sales of outboard motors increased in Europe. Power product sales increased in Japan and Europe. However, yen-denominated sales for all-terrain vehicles (ATVs) -- mainstay products in the segment -- decreased in North America, due to the strong yen, even though ATV unit sales in the region rose. As a result, total sales of power products remained about the same as the corresponding period of the previous year, standing at 42.8 billion yen. Sales in the "other product" segment rose 4.1 percent, to 20.8 billion yen, with a steady increase for surface mounters in the mainstay IM business, centered in China and the rest of Asia.
By market, sales in Japan declined 5.4 percent, to 38.8 billion yen, from the same period of the previous year. However, overseas sales increased steadily, including a 2.1 percent rise, to 86.4 billion yen in North America; an 8.8 percent expansion, to 67.4 billion yen in Europe; a 6.5 percent gain, to 42.5 billion yen in Asia; and a 3.3 percent increase, to 22.3 billion yen in other areas.
In terms of profits, the three key components -- operating income, recurring profit, and net income -- totaled 13.4 billion yen, 16.5 billion yen, and 8.7 billion yen, respectively. Operating income, recurring profit, and net income all exceeded the figures planned at the beginning of fiscal 2004, by 7.2 percent, 22.2 percent, and 24.3 percent, respectively.
On the exchange rate front, during the three-month period, the yen remained at 119 yen against the U.S. dollar (higher by 11 yen from the same period of the previous year and lower by one yen from the forecast at the previous fiscal year-end) and was 127 yen against the euro (lower by 12 yen from the previous first quarter and one yen from the forecast at the previous fiscal year-end).
The number of consolidated subsidiaries stood at 100, an increase of one from the previous fiscal year-end, while the number of affiliates accounted for by the equity method was 41, an increase of four from the previous fiscal year-end. |
In fiscal 2004, ending March 31, 2004, business conditions are expected to become more challenging. However, Yamaha Motor plans to keep extending its all-time records for sales and profits by further enhancing its management foundation, as spelled out in the medium-term management plan, NEXT 50.
The Company will continue to pursue its publicly announced targets for net sales, operating income, recurring profit, and net income, which are, for the interim period, 530 billion yen, 30 billion yen, 30 billion yen, and 14 billion yen, respectively, and, for the full year 1,030 billion yen, 68 billion yen, 68 billion yen, and 32 billion yen, respectively.
These business performance forecasts are based on the assumption that the yen will appreciate by 5 yen against the U.S. dollar, to 118 yen, while depreciating 9 yen against the euro, to 126 yen, during the full-year period. |
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