Yamaha Motor Co., Ltd. announces Q3 2020 results

Yamaha Motor Co., Ltd. has announced its consolidated business results for the first nine months of 2020.

Net sales for Yamaha Motor Co., Ltd.'s consolidated accounting period for the first nine months of the fiscal year ending December 31, 2020 were 1,067.1 billion yen (a decrease of 200.1 billion yen or 15.8% compared with the same period of the previous fiscal year). Operating income was 56.4 billion yen (a decrease of 43.6 billion yen or 43.6%), ordinary income was 59.7 billion yen (a decrease of 42.7 billion yen or 41.7%), and net income for the period attributable to owners of parent was 40.1 billion yen (a decrease of 35.6 billion yen or 47.0%).

However, the results for the third quarter (July–September) were net sales of 381.6 billion yen (a decrease of 29.7 billion yen or 7.2%) and an operating income of 37.3 billion yen (an increase of 6.3 billion yen or 20.4%), showing our shift to a stage of recovery from the adverse effects of the COVID-19 pandemic seen in the first half of the fiscal year.

For the third quarter of this consolidated accounting period, the U.S. dollar traded at 108 yen (an appreciation of 1 yen from the same period the previous fiscal year), and the euro at 121 yen (an appreciation of 2 yen).

For net sales, although sales increased in the Robotics and Financial Services businesses, the impact of the COVID-19 pandemic saw a decrease in unit sales in the Land Mobility and MarineProducts businesses, resulting in a decline in sales overall. Operating income declined overall due to factors such as the impact of foreign exchange rates and decreases in utilization rates from factory closures in the Land Mobility and Marine Products businesses.

Results by Business Segment:

Land Mobility Business

Net sales were 682.4 billion yen (a decrease of 163.1 billion yen or 19.3% compared with the same period of the previous fiscal year) and operating income was 8.9 billion yen (a decrease of 26.4  billion yen or 74.9%).

With motorcycles, although immediate total demand is currently recovering mainly in developed countries, the impacts of the COVID-19 pandemic have been significant and unit sales have fallen.

In addition, temporary factory closures in several countries lowered our factory utilization rate, which led to overall decrease in sales and profits.

In Indonesia, total demand fell drastically due to stricter scrutiny of sales financing prompted by the country’s economic downturn. In India and the Philippines, although immediate total demand is recovering, the effects of the lockdowns imposed in the first half of the year could not be wholly mitigated and unit sales decreased. In Vietnam, the economic slowdown caused by the COVID-19

pandemic led to restructurings and reduced incomes, bringing a decrease in overall demand.

Taiwan, on the other hand, has seen aggregate demand recover to levels surpassing the previous year.

With recreational vehicles (all-terrain vehicles, recreational off-highway vehicles (ROVs) and snowmobiles), immediate demand for outdoor recreation products has recently spiked and retail sales in North America — the world’s largest market in this product category — and other main markets have recovered. However, sales and profits fell due to supply shortages brought on by the drop in our factory utilization rate triggered by the effects of the COVID-19 pandemic.

For electrically power-assisted bicycles, the impacts of the COVID-19 pandemic brought about production delays and the ceasing of sales work, and the subsequent decrease in sales of E-kits for Europe and complete bicycle unit sales in Japan resulted in lower sales and profits.

Marine Products Business

Net sales were 247.4 billion yen (a decrease of 30.3 billion yen or 10.9% compared with the same period of the previous fiscal year), and operating income was 40.7 billion yen (a decrease of 11.1 billion yen or 21.5%). Unit sales declined due to temporary closing of operations at boatbuilders and dealerships in North America due to COVID-19. In addition, temporary closures at the Iwata  Main Factory in Japan and factories in the U.S. led to supply not keeping pace with the rapid  recovery in overall demand, resulting in lower sales and profits.

Robotics Business

Net sales were 54.7 billion yen (an increase of 1.3 billion yen or 2.5% compared with the same period of the previous fiscal year) and operating income was 1.0 billion yen (a decrease of 5.4 billion yen or 84.6%). Although unit sales of surface mounters increased in Asia (including China, South Korea and Taiwan), curbing of investments in the automotive sector saw the model mix  suffer as a result. In addition, making Yamaha Motor Robotics Holdings Co., Ltd. (YMRH) a subsidiary at the end of the second quarter of the previous fiscal year led to an increase in sales

and a decrease in profits.

Financial Services Business

Net sales in the Financial Services segment were 34.3 billion yen (an increase of 3.5 billion yen or 11.4% compared with the same period of the previous fiscal year) and operating income was 5.8 billion yen (a decrease of 0.4 billion yen or 6.3%).

Through the development of our own financing programs in the U.S. targeting “Prime” customer segments, we saw an increase in the outstanding receivables balance that drove greater income. However, the increase in the allowance for doubtful accounts in anticipation of the impacts brought by the COVID-19 pandemic led to a decrease in profits.

Other Products Business

Net sales were 48.4 billion yen (a decrease of 11.6 billion yen or 19.3% compared with the same period of the previous fiscal year) and operating income was 20.0 million yen (a decrease of 0.3 billion yen or 93.4%). Unit sales of golf cars and generators fell and led to a decrease in sales and profits.

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