Yamaha Motor Co. Ltd. has achieved quarterly record highs in net sales and profits it announced in a recent financial report. The company said that its net sales, operating income, recurring profit and net income on a consolidated basis for the first quarter of the fiscal year ending December 31, 2006 totaled Y398.9 billion, Y37.0 billion, Y37.4 billion and Y28.1 billion ($245 million), respectively.
Compared with the results for the previous first quarter, net sales, operating income, recurring profit and net income for the first quarter ended March 31, 2006 all rose significantly: by 21.5 percent, 14.1 percent, 15.3 percent and 22.2 percent, respectively.
On the foreign exchange front, the average purchasing value of the yen depreciated by nine yen against the U.S. dollar during the term compared to the value in the previous first quarter, to 114 yen, and dropped by one yen against the euro from the previous same period, to 137 yen.
Sales grew in all business segments. Marine product sales amounted to Y69.4 billion -- up 9.6 percent from the previous first quarter -- led by sales expansion for outboard motors and personal watercraft in the United States. Motorcycle sales totaled Y240.5 billion -- up 31.4 percent from the previous first quarter -- due mainly to robust sales in ASEAN countries such as Indonesia, Thailand and Vietnam. Power product sales were Y51.8 billion -- up 14.4 percent from the previous first quarter -- reflecting favorable sales of side-by-side vehicles in North America. Sales in the “other products” segment reached Y37.2 billion, up 1.5 percent from the previous first quarter.
Operating income from the marine product business amounted to Y9.7 billion, up 37.1 percent from the previous first quarter. In the motorcycle business, operating income reached Y16.2 billion, up 4.4 percent from the previous first quarter. In the power product business, operating income reached Y5.9 billion -- up 29.9 percent from the previous first quarter -- while operating income from the “other products” business was Y5.2 billion, down 1.6 percent from the previous first quarter.
Major factors impacting the operating income include an increase in selling, general and administrative expenses totaling Y12.8 billion from the previous first quarter; hikes in raw material prices and the negative impact resulting from a change in the product mix and related factors, which together were Y7.3 billion greater than the previous first quarter; an increase in gross profit due to sales expansion, amounting to Y11.2 billion from the previous first quarter; cost reductions totaling Y2.2 billion from the previous first quarter; and a positive impact on exchange translation amounting to Y11.3 billion. All these factors combined to send consolidated operating income during the period under review to a record high on a quarterly basis.
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