Boating Industry Intelligence You Can Profit From
KENNESAW, Ga. – Earlier today, Japan-based Yamaha Motor Co., Ltd. released its consolidated midyear 2009 financial results and revised 2009 full year forecast, including a 33.3-percent decline in net sales during the six-month period ended June 30, an operating loss of ¥33.8 billion, an ordinary loss of ¥36.9 billion and a net loss of ¥74.7 billion.
Marine product sales were down 41.9 percent in the first half of the fiscal year, compared to the same period of last year, due to reduced demand and the negative impact of the stronger yen, the company explained in its report. This resulted in an operating loss of ¥9.8 billion
As a result of what it described as “very harsh business conditions for the Yamaha Motor Group,” particularly in the U.S. and Europe, the company is projecting a decrease of ¥45 billion in marginal profit as compared to its original forecast as it cuts production in Japan to reduce market stocks in the U.S. and Europe.
“Today’s second-quarter earnings report from our global parent Yamaha Motor Co., Ltd., underscores the severe global market challenges being faced by Yamaha and many other companies, in many industries, worldwide,” said Masato Adachi, president of Yamaha Motor Corp., U.S.A., in a separate statement today. “Here in the U.S., we remain very confident in Yamaha’s brand, products and business operations, and are working diligently through the market’s challenges to prepare for future success.”
In fact, despite today’s challenges, Yamaha Motor Corp.’s U.S. operations – encompassing motorcyles, outboard motors, ATVs, side x side vehicles, golf cars, personal watercraft, snowmobiles, boats, outdoor power equipment, accessories, apparel and more – are making progress on a number of key fronts, according to the company.
Yamaha Marine Group, which sells outboard motors, has seen encouraging improvements in both market share and retails sales in recent months, it said. The company said NMMA data suggests that its retail market share increased to 36.7 percent in the first half of 2009 from 34.7 percent for the same period in 2008. June 2009 retail sales increased by 5 percent compared to June 2008, while July 2009 retail sales increased by 21 percent, Yamaha added.
“Although we still face many challenges in our recovery, we are pleased with these recent positive signs,” said Phil Dyskow, Yamaha Marine Group president. “We believe we are taking the appropriate steps to mitigate the remaining challenges and position ourselves for recovery in 2010.”
“The economic climate for both our personal watercraft and sport boat product lines remains challenging,” said Yamaha WaterCraft Group President Mark Speaks, “but we are starting to see some encouraging signs in the marketplace. We have enjoyed an increase in our share of market with both product lines and a simultaneous improvement in customer satisfaction ratings across our product offerings.”
Yamaha WaveRunner market share is currently up nearly three points compared to the end of the 2008 season, and Yamaha Boats have taken the number-1 spot in the 20- to 25-foot open bow, runabout segment, according to Yamaha.
“The improving sales numbers mirror increases in customer satisfaction, which rose nearly four and a half points for WaveRunners and 12 points for sport boats over the past year,” the company said in the statement.
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