Yamaha outlines financial targets

Japan’s Yamaha Motor Co.’s numerical targets for the fiscal year ending Dec. 31, 2007, include net sales of $13.810 billion, operating income of $1.143 billion and recurring profit of $1.143 billion.
The financial targets, revealed in a recently released corporate forecast, serve as goals Yamaha hopes to achieve at the culmination of a three-year medium-term management plan currently under way. Called NEXT50-Phase II, the management plan is scheduled to run from Jan. 1, 2005 to Dec. 31, 2007.
Yamaha says NEXT50-Phase II is designed to address three key management issues:

  • create value that differentiates Yamaha from the competition;
  • continue a profit-oriented approach established in the original NEXT50; and
  • maximize opportunities for business growth.
    The plan also includes capital expenditures totaling $2 billion, a 60% increase in investment compared to the previous three-year term.
    To create value that differentiates Yamaha from the competition, the company hopes to enhance customer value by focusing on a branding strategy, increase social value by fulfilling corporate social responsibilities, raise shareholder value, and better utilize company personnel and organizations.
    To expand upon a profit-oriented approach established in the original NEXT50, Yamaha plans to expand profits for businesses in the United States and Europe, maintain and expand profitability in its surface mounter business, continue and enhance cost-reduction realized through its system-supplier system, and promote high-value-added marketing.
    Finally, to maximize opportunities for business growth, Yamaha’s plan is to expand the motorcycle business in the ASEAN region, restructure its business foundation in Brazil, India and China, develop the Russian market, and enter new domains, such as biotechnology and the electric vehicle business.
    Motorcycles = 57.4%, $5.530 billion
    Marine Products = 17.6%, $1.695 billion
    Power Products = 16.1%, $1.555 billion
    Other = 8.9%, $857.1 million
    Europe = 27.9%
    North America = 27.6%
    Asia = 24.7%
    Japan = 11.6%
    Other areas = 8.2%

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