Inline Performance Magazine

Inline Performance Magazine

Yamaha’s Financial Outlook

Posted: 18 Feb 2011 09:00 PM PST

Hi guys, Paul here again. A record high sales year for Yamaha Motor Company undid some of the damage from the 2009 year loss but the company’s announcement of a less-than-expected forecast for 2011 sent stock prices plummeting.

In 2009, Yamaha endured a loss of 218.1 billion yen ($2.6 billion USD). A bit of shrewd planning and the undying support of consumers resulted in a record high year in 2010 with 6.96 million motorcycles sold. This gave Yamaha a profit of 18.3 billion yen ($218 million USD) from the 906.0 billion yen ($10.8 billion USD) in motorcycle sales revenue. Yamaha Motor Co. also sells ATV, marine, and other power products. Total sales for 2010 were 1.29 trillion yen ($15.5 billion USD). The Asian market accounted for 607.9 billion yen (US$7.2 billion) in sales, where Yamaha makes most of its revenue. An additional 1.1 million motorcycles were sold in 2010 in the emerging Asian markets, including Indonesia, Vietnam, and Thailand than in 2009. In North America a mere 53,000 motorcycles were sold in 2010.

Nikkei issued a predicted forecast for Yamaha Motor Co.’s net profits for 2011 to increase to 35 billion yen ($418.6 million USD) and its operating profits to increase to 55 billion yen ($657.7 million USD). When Yamaha released its own forecasts on Tuesday with expected profit increases to only 20 billion yen ($239.2 million USD) for net profits and 53 billion ($633.8 million USD) for operating profits, investors panicked and sent Yamaha’s stock price down 10.3% to close at 1525. Yamaha expects the yen to appreciate an additional six yen over 2010 rates for both the United States dollar and the euro.

This news comes after Yamaha’s decision in January to close its production plant in Spain, affecting over 400 workers, and shifting production to northern France in Yamaha’s existing factory in Saint-Quentin.

Stay tuned for more updates, and be sure to order your copy of the 2011 print edition of Inline Performance Magazine HERE at the pre-order price for a limited time.

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