Press release -
Consolidated Business Results Summary - First Three Months of Fiscal Year Ending December 31, 2021 -
Consolidated Business Results
IWATA, May 14, 2021 - Yamaha Motor Co., Ltd. (Tokyo: 7272) announces its consolidated business results for the first three months of fiscal 2021. Net sales for Yamaha Motor Co., Ltd.’s consolidated accounting period for the first quarter of the fiscal year ending December 31, 2021 were 444.1 billion yen (an increase of 48.3 billion yen or 12.2% compared with the same period of the previous fiscal year) and operating income was 48.3 billion yen (an increase of 22.8 billion yen or 89.8%).
Sales grew due to numerous factors that included a recovery from the impacts of the COVID-19 pandemic that arose and grew from March last year; rising demand for personal commuter models and outdoor family recreation in developed markets such as North America; a recovery in the motorcycle sector in emerging markets; and ongoing capital investment in China since last year. Operating income grew significantly thanks to the increase in net sales as well as cost reductions that helped absorb the effects of soaring logistics and material costs.
Ordinary income was 52.9 billion yen (an increase of 26.0 billion yen or 96.9%) and net income for the period attributable to owners of parent was 41.8 billion yen (an increase of 32.2 billion yen or 334.8%).
For the first quarter of this consolidated accounting period, the U.S. dollar traded at 106 yen (an appreciation of 3 yen from the same period of the previous fiscal year), and the euro at 128 yen (a depreciation of 8 yen).
Results by Business Segment
Land Mobility Business
Net sales were 290.4 billion yen (an increase of 30.1 billion yen or 11.6% compared with the same period of the previous fiscal year) and operating income was 19.9 billion yen (an increase of 11.3 billion yen or 131.5%).
With motorcycles for developed markets, unit sales in Europe fell due to supply delays from a shortage of shipping containers, but unit sales, net sales and profits grew overall thanks to continued growth in demand stemming from the booming outdoor and family recreation sector seen mainly in North America.
For motorcycles in emerging markets, unit sales increased everywhere except Indonesia, where the impacts of COVID-19 remain significant. Unit sales in Thailand, Taiwan, China and Brazil have recovered to levels on par with the first quarter of 2019. As a result, sales and profits increased accordingly.
Production of recreational vehicles (all-terrain vehicles, recreational off-highway vehicles (ROVs) and snowmobiles) has fallen behind in response to the robust demand due to a parts shortage, but the ongoing growth in demand for outdoor and family recreation since last year resulted in higher unit sales and thus greater sales and profits.
Sales and profits with electrically power-assisted bicycles increased due to continued strong sales of complete bicycles in Japan and E-kits for Europe.
Marine Products Business
Net sales were 97.5 billion yen (an increase of 6.8 billion yen or 7.4% compared with the same period of the previous fiscal year) and operating income was 19.3 billion yen (an increase of 3.8 billion yen or 24.3%).
Demand for outboard motors in North America and Europe is steadily rising with the boom in outdoor and family recreation. We were still greatly affected by the delays in ship loading due to the global shortage of containers and shipping suspensions seen in the beginning of the year, but thanks to reinforcing supply with greater production volume as well as the production adjustments made last year, unit sales increased. Steady parts sales also contributed toward higher overall sales and profits.
Net sales were 27.1 billion yen (an increase of 9.3 billion yen or 51.8% compared with the same period of the previous fiscal year) and operating income was 3.1 billion yen (the same period of the previous fiscal year recorded an operating income of 0.3 billion yen).
Continued strong demand for capital investment in Asia (including China, Taiwan and South Korea) drove unit sales of surface mounters up significantly, resulting in much higher sales and profits overall. The operating deficit for Yamaha Motor Robotics Holdings Co., Ltd. was also narrowed.
Financial Services Business
Net sales were 11.3 billion yen (a decrease of 0.6 billion yen or 5.0% compared with the same period of the previous fiscal year) and operating income was 4.7 billion yen (an increase of 3.4 billion yen or 256.4%).
Strong retail sales and product supply delays caused a substantial drop in market inventory and this drove down receivables for wholesale sales, resulting in lower net sales overall. However, a decrease in the allowance for doubtful accounts and an increase in income from retail financing led to higher profits.
Other Products Business
Net sales were 17.8 billion yen (an increase of 2.7 billion yen or 18.1% compared with the same period of the previous fiscal year) and operating income was 1.2 billion yen (the same period of the previous fiscal year recorded an operating loss of 0.3 billion yen).
Sales and profits grew due to an increase in golf car unit sales.
Forecast of Consolidated Business Results
For the full fiscal year ending December 31, 2021, there will be various effects from the strain on logistics and distribution, the shortage of semiconductors and other parts, soaring raw material prices and more, but we expect the current favorable business environment for our businesses in developed markets, the motorcycle business in emerging markets and the robotics business to continue.
In addition, upon reviewing our currency exchange rate forecasts for the second quarter and onwards, we have revised our forecasts for net sales and various incomes as shown below. Note that this forecast does not reflect the effects of global lockdowns due to the rising spread of new coronavirus variants.
These forecast figures are based on the U.S. dollar trading at 106 yen during the fiscal year (a depreciation of 3 yen from the initial forecast and an appreciation of 1 yen from the same period of the previous fiscal year) and the euro at 128 yen (a depreciation of 2 yen from the initial forecast and a depreciation of 6 yen from the same period of the previous fiscal year).
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