Yamaha Motor Co., Ltd. has announced consolidated business results for the second quarter/first half of fiscal 2020. Net sales for Yamaha Motor Co., Ltd.’s consolidated accounting period for the first six months of the fiscal year ending Dec. 31, 2020 were 685.5 billion yen (a decrease of 170.4 billion yen or 19.9% compared with the same period the previous fiscal year).
Operating income was 19.1 billion yen (a decrease of 49.9 billion yen or 72.3%), ordinary income was 20.7 billion yen (a decrease of 49.5 billion yen or 70.5%), and a net loss for the quarter attributable to owners of parent was 2.8 billion yen (the same period the previous fiscal year recorded a net income of 52.0 billion yen).
For this first six months consolidated accounting period, the U.S. dollar traded at 108 yen (an appreciation of 2 yen from the same period the previous fiscal year), and the euro at 119 yen (an appreciation of 5 yen).
For net sales, although sales increase in the Robotics Business and Financial Services Business were achieved, the Land Mobility Business and the Marine Products Business saw a large decrease in sales volumes, resulting in an overall decline in sales due to the impact of the COVID-19 pandemic. Operating income declined in all businesses due to the effects of exchange rates, decreased sales, and the effects of factory closures.
Results by Business Segment
Net sales were 429.0 billion yen (a decrease of 133.6 billion yen or 23.7% compared with the same period the previous fiscal year), with an operating loss of 6.7 billion yen (the same period the previous fiscal year showed an operating income of 20.8 billion yen).
For motorcycles, due to the impact of the COVID-19 pandemic, the number of units sold decreased, and the various lengths of factory closures in each country resulted in lower sales and income. Additionally, total demand in Indonesia dropped significantly due to stricter examinations on sales finance due to the economic downturn. In India and the Philippines, the effects of lockdowns were longer than in other countries. However, in China, Vietnam and Taiwan, the recovery of total demand has steadily progressed.
In RVs (all-terrain vehicles, Recreational Off-highway Vehicles (ROVs), and snowmobiles), the deficit widened as a result of the decrease in ROV sales and the closure of US factories due to lockdowns.
For electrically power assisted bicycles, due to the COVID-19 Pandemic impact, the subsequent production delays, and the refraining from sales activities, sales and income declined as a result of a decrease in unit sales of E-kits in Europe and electrically power assisted bicycles in Japan.
Net sales were 167.0 billion yen (a decrease of 32.6 billion yen or 16.3% compared with the same period the previous fiscal year), and operating income was 25.4 billion yen (a decrease of 13.5 billion yen or 34.6%).
In addition to production adjustments for outboard motors in the first quarter, outboard motors and water vehicle sales decreased in the second quarter due to the suspension of operations of North American boat builders and dealers, and the suspension of US manufacturing operations due to the COVID-19 Pandemic impact. Sales and income also declined due to the timed suspension of operations at the head office factory due to inventory adjustments.
Net sales were 37.4 billion yen (an increase of 5.1 billion yen or 15.9% compared with the same period the previous fiscal year), and operating income was 0.6 billion yen (a decrease of 4.7 billion yen or 89.1%).
Although unit sales of surface mounters increased in Asia (incl. China, Taiwan and Korea), investment in the automotive domain was curbed due to the impact of the COVID-19 pandemic. An increase in overall net sales but a decrease in income resulted due to the deterioration of the surface mounter model mix and the impact of the Yamaha Motor Robotics Holdings Corporation (YMRH) – which became a subsidiary at the end of the second quarter of the previous fiscal year.
Net sales were 22.6 billion yen (an increase of 2.2 billion yen or 10.6% compared with the same period the previous fiscal year), and operating income was 0.3 billion yen (a decrease of 3.5 billion yen or 92.2%).
Through the development of our own financial programs in US prime segments, sales increased due to an increase in the receivables balance, however net sales increased with decreased income due to an increase in the allowance for doubtful accounts in anticipation of the COVID-19 pandemic impact.
Net sales were 29.4 billion yen (a decrease of 11.5 billion yen or 28.1% compared with the same period the previous fiscal year), with an operating loss of 0.5 billion yen (the same period the previous fiscal year showed an operating income of 0.4 billion yen).
Unit sales of products such as golf cars and generators decreased, leading to a decrease in sales and income.
Forecast of Consolidated Business Results
The full-year consolidated financial forecast for the fiscal year ending December 31, 2020 was not decided due to difficulties to reasonably calculate the impact of the COVID-19 pandemic on the Group. However, we can announce the earnings forecast calculated based on the estimates currently available.