Yamaha Motor Co., Ltd. Has announced its results for its 2016 full financial year (the period to December 31st 2016), reporting total group net sales of 1,502.8 billion yen (approx. 12.5 Bn. euro), a decrease of 128.3 billion yen (-7.9%) compared with the previous fiscal year.
Operating income was 108.6 billion yen, a decrease of 21.7 billion yen (-16.7%); ordinary income was 102.1 billion yen, a decrease of 23.2 billion yen (-18.5%), and net income attributable to parent company shareholders was 63.2 billion yen, an increase of 3.1 billion yen (-5.2%) compared with the previous fiscal year.
The fluctuation in operating income compared to the previous fiscal year was caused by profitability improvements of 36.5 billion yen thanks to increased sales of products in the higher price range, and cost reductions through development methods such as for platform and global models and manufacturing methods such as for theoretical-value-based production, being overshadowed by negative foreign exchange effects of 43.8 billion yen and increased expenses etc., resulting in decreased income of 14.4 billion yen.
In addition to the continued appreciation of the yen against the U.S. dollar and the euro, the foreign exchange effects were driven by the yen continuing to appreciate against the currencies of emerging markets such as Indonesia, Brazil and India. Excluding foreign exchange effects, consolidated net sales increased (by 29.3 billion yen or 1.8%) and consolidated operating income increased (by 22.1 billion yen or 16.9%) compared with the previous fiscal year.
For the fiscal year, the U.S. dollar traded at 109 yen (an appreciation of 12 yen against the previous fiscal year), and the euro at 120 yen (an appreciation of 14 yen against the previous fiscal year).
Net sales of motorcycles were 930.1 billion yen (a decrease of 102.4 billion yen or -9.9% compared with the previous fiscal year), and operating income was 36.0 billion yen (a decrease of -3.2 billion yen or 8.1%).
Unit sales increased in markets such as India, Vietnam and the Philippines, were on a similar level to the previous year in developed markets, but decreased in markets such as Indonesia, China and Brazil.
Global net sales decreased due to foreign exchange effects. Operating income increased in emerging markets thanks to greater sales of products in the higher price range and the effect of cost reductions, but decreased in developed markets due to foreign exchange effects, leading to an overall decrease.
In developed markets, Yamaha says it is progressing initiatives regarding reductions in distribution inventories, the finance business and further structural reforms. In addition, active work continues to expand sales and reduce the break-even point in the healthy Indian market, and structural reforms are progressing amidst the Brazilian and Chinese market slumps.
