Yamaha Motor Co., Ltd. has announced its consolidated business results for the first three months of the fiscal year ending Dec. 31, 2022.
Net sales for the period were 481.7 billion yen (an increase of 37.6 billion yen or 8.5% compared with the same period of the previous fiscal year) and operating income was 40.1 billion yen (a decrease of 8.2 billion yen or 16.9%). Ordinary income was 45.7 billion yen (a decrease of 7.1 billion yen or 13.5%) and net income attributable to owners of parent was 32.6 billion yen (a decrease of 9.2 billion yen or 21.9%). For the first three months of this consolidated accounting period, the U.S. dollar traded at 116 yen (a depreciation of 10 yen from the same period of the previous fiscal year) and the euro at 130 yen (a depreciation of 2 yen).
Recoveries from the effects of the COVID-19 pandemic led to strong sales of outboard motors in developed markets and healthy sales of motorcycles in emerging markets such as Indonesia, and this resulted in higher consolidated net sales. However, operating income declined due to the soaring prices for aluminum, iron, and other raw materials and the impact of rising logistics costs caused by a shortage of shipping containers bound for the United States, among other factors.
Results by Business Segment
Land Mobility Business
Net sales were 315.4 billion yen (an increase of 25.0 billion yen or 8.6% compared with the same period of the previous fiscal year) and operating income was 12.2 billion yen (a decrease of 7.7 billion yen or 38.9%).
For the motorcycle business, demand is trending towards recovery thanks to measures to stem COVID-19 infections and the easing of restrictions seen in each country. Higher unit sales in Indonesia, Brazil, Europe, and other markets led to higher net sales for the business. However, profits declined not only due to soaring raw material prices but also from procurement delays for semiconductors and other parts, which led to an insufficient supply of our premium segment models that adversely affected the model mix.
With recreational vehicles (all-terrain vehicles, ROVs and snowmobiles), unit sales of the Wolverine RMAX model series were strong, but rising raw material prices and spiking labor expenses impacted figures and resulted in higher net sales but lower profits.
In the electrically power-assisted bicycles business, tightening supplies of semiconductors and electronic components led to insufficient supply of e-Kit parts for Europe, and after recording provisions for product warranties triggered by a battery recall, the business posted lower sales and profits overall.
Marine Products Business
Net sales were 108.7 billion yen (an increase of 11.2 billion yen or 11.4% compared with the same period of the previous fiscal year) and operating income was 20.4 billion yen (an increase of 1.0 billion yen or 5.4%).
For outboard motors, a shortage of vessels and shipping containers continues to cause delays in loading ships with product, but unit sales of 100+ hp outboard motors increased thanks to our responses to production and supply issues. Boat and personal watercraft unit sales, however, decreased due to insufficient parts and other issues. Still, sales and profits both rose for the Marine Products business as a whole.
Net sales were 26.2 billion yen (a decrease of 0.9 billion yen or 3.2% compared with the same period of the previous fiscal year) and operating income was 3.7 billion yen (an increase of 0.6 billion yen or 19.7%).
In the surface mounter market, the momentum of demand in China has slowed compared to last year but remains quite strong. Despite having orders backlogged from the previous year, sales declined because of production cutbacks forced by the shortage of electronic components. On the other hand, the semiconductor equipment market saw year-on-year growth and sales rose. The price increases implemented last year served to improve the marginal profit ratio and profits for the Robotics business overall increased.
Financial Services Business
Net sales were 12.8 billion yen (an increase of 1.5 billion yen or 13.4% compared with the same period of the previous fiscal year) and operating income was 4.4 billion yen (a decrease of 0.3 billion yen or 6.7%).
Sales increased due to higher financial receivables in Brazil and Europe, but profits declined year on year due to a decrease in the one-time allowance for doubtful accounts last year.
Other Products Business
Net sales were 18.6 billion yen (an increase of 0.8 billion yen or 4.7% compared with the same period of the previous fiscal year) with an operating loss of 0.6 billion yen (operating income for the same period of the previous fiscal year: 1.2 billion yen).
Sales rose thanks to an increase in premium-priced golf car unit sales, but operating income declined due to soaring raw material costs and other factors.
Forecast of Consolidated Business Results
Regarding the forecast consolidated business results for the fiscal year ending Dec. 31, 2022, no changes have been made to the Feb. 10 forecast made when announcing the company’s fiscal 2021’s results:
Net Sales: 2,000.0 billion yen
Operating Income: 190.0 billion yen
Ordinary Income: 190.0 billion yen
Net Income Attributable to Owners of Parent: 130.0 billion yen
These forecast figures are based on the U.S. dollar trading at 113 yen during the fiscal year (a depreciation of 3 yen from FY2021) and the euro at 128 yen (an appreciation of 2 yen).