Yamaha president Hiroyuki Yanagi

Yamaha: Yearly Profits Revised Down To ¥105 Billion, Second Quarter Sees 11% Reduction In Profits

For the company’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 ¥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 company’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 ¥112 to the dollar, the yen proved to be ¥8 stronger than it was for the same period the previous year, and ultimately serving as the culprit behind decrease revenue to ¥21.5 billion ($210 million USD) at the operating income stage. Net profits totalled to ¥32.4 billion ($316 million USD), down 38%.

Exchange rates for the financial year were revised from ¥117 to the dollar to ¥106 and ¥127 to the Euro to ¥117. As a result, projected operating profit for the year dropped by ¥15 billion ($146 million USD) to ¥105 billion ($1.025 billion USD) (19% less than last year) and net profit projections were revised to reflect a loss of ¥20 billion ($195 million USD) down to ¥60 billion ($586 million USD) (on par with the previous year).

Yamaha president Hiroyuki Yanagi stated at a press conference in Tokyo that “While it’s difficult to judge what exchange rates will end up being, we’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.”

[Translated by Bryce Clarke]