Yamaha Motor Co. Releases First Quarter Summary


Yamaha Motor Co. Ltd. released its first quarter net sales for the consolidated accounting period of the fiscal year ending December 31, 2013. The company reported 327.6 billion yen in net sales (approximately $3.25 billion CAN), an increase of 3.7 percent compared with the same quarter the previous fiscal year.

Product sales of motorcycles, outboard motors, and all-terrain vehicles decreased against the same quarter the previous fiscal year, but the company says profit increased due to foreign exchange gains from the depreciation of the yen.

Regarding operating income, Yamaha Motor says the fall in profit from the decreased sales was absorbed by the effect of the depreciation of the yen and cost reductions. Operating income was 13.9 billion yen (an increase of 11.6 percent compared with the same quarter the previous fiscal year). Ordinary income was 13.4 billion yen (a decrease of 21.3 percent against the same quarter the previous fiscal year) due to the impact of foreign exchange contract evaluation. Net income for the quarter was 7.4 billion yen (a decrease of 35.6 percent).

For the first quarter consolidated accounting period, the US dollar traded at 92 yen (a depreciation of 13 yen from the same quarter the previous fiscal year), and the euro at 122 yen (a depreciation of 18 yen).

Marine business:
According to the company, the firming US market and the effect of the depreciation of the yen led to increased income and increased profitability. Global net sales of marine products were 59.1 billion yen (approximately $586.7 million CAN) (an increase of 8.4 percent compared with the same quarter the previous fiscal year), and operating income was 10.3 billion yen (approximately $102.2 million CAN) (an increase of 143.8 percent).

Power products business:
Global net sales for the power products business were 24.2 billion yen (an increase of 9.6 percent compared with the same quarter the previous fiscal year), with an operating loss of 700 million yen (the same period the previous fiscal year showed an operating loss of 100 million yen). Income increased due to the effect of the depreciation of the yen, but the effect of the reversal of accrual for product liability (500 million yen for the same quarter the previous fiscal year, 0 yen for this quarter) contributed to producing an operating loss.

Forecast of consolidated business results
Yamaha Motor Co. has made no changes to its forecasts presented in the previous fiscal year report on February 14, which projected 1.4 trillion yen (approximately $13.8 billion CAN) in net sales, 50.0 billion yen in operating income, 52.0 billion yen in ordinary income and 28.0 billion yen in net income for the fiscal year.