Japanese auto company, Yamaha Motor Co. Ltd, has disclosed that in the first half of the fiscal year ending December 31, 2016, motorcycle business income in emerging markets rose thanks to improvements in product mix and cost reductions.
It said strong earnings were achieved despite a fall in net sales value due to unit sales declines in countries including Indonesia and Brazil.
Total consolidated net sales of 778.3 billion yen were down 6.1 per cent from the previous year and operating income of 65.4 billion yen was down 10.9 per cent.
According to the leading auto company in the world, sales and income in developed markets decreased, largely the result of the appreciated yen.
By segment, unit sales of electrically power assisted bicycles rose in Japan.
A significant increase in exports to Europe of E-kits, the drive units for these bicycles, helped the “other products” segment achieve net sales of 37.1 billion yen, up 3.5 per cent, and operating income of 2.3 billion yen, up 51.6 per cent.
Yamaha Motor is now forecasting full-year net sales of 1,500 billion yen, down 11.8 per cent from the initial forecast, and operation income of 105 billion yen, down 12.5 per cent, primarily due to weaker sales in developed markets due to the strong yen.
Motorcycles are expected to remain favorable in markets such as Vietnam, the Philippines and Taiwan.
Yamaha Motor is a world-leading producer of motorcycles, marine products, power products and intelligent machinery.
The company’s diverse business and wide variety of products are built around its proprietary technologies focused on small engines, chassis & hull and electronic control.
Yamaha Motor conducts global development, production and marketing operations through 140 subsidiaries and equity-method affiliates in 30 countries.
About 90% of consolidated net sales are generated in more than 200 countries outside of Japan. The company is steadily restructuring its global engineering, manufacturing and marketing capabilities for sustainable long-term growth.