For the companyâ€™s second quarterly consolidated financial statement (January through June) for 2016 announced on 4 August, Yamaha Motor Company stated that they had experienced an 11% decrease in operating profit compared with the same period from the previous year, totalling Â¥65.4 billion (approx. $640 million USD). While performance of the vehicles principal product, 2 wheel vehicles, had basically levelled off, a strong yen served to stifle the companyâ€™s overall performance.
Global sales for the 2 wheelers during this period were down 1% to 2,510,000 units, though the strongest market for these vehicles, Asia, saw a 1% increase in sales at 2,060,000 units. With the exchange rate at Â¥112 to the dollar, the yen proved to be Â¥8 stronger than it was for the same period the previous year, and ultimately serving as the culprit behind decrease revenue to Â¥21.5 billion ($210 million USD) at the operating income stage. Net profits totalled to Â¥32.4 billion ($316 million USD), down 38%.
Exchange rates for the financial year were revised from Â¥117 to the dollar to Â¥106 and Â¥127 to the Euro to Â¥117. As a result, projected operating profit for the year dropped by Â¥15 billion ($146 million USD) to Â¥105 billion ($1.025 billion USD) (19% less than last year) and net profit projections were revised to reflect a loss of Â¥20 billion ($195 million USD) down to Â¥60 billion ($586 million USD) (on par with the previous year).
Yamaha president Hiroyuki Yanagi stated at a press conference in Tokyo that â€œWhile itâ€™s difficult to judge what exchange rates will end up being, weâ€™re hoping to maintain stable profits. We plan to continue with our efforts into investing into future growth of the company as we had set out before.â€
[Translated by Bryce Clarke]