Yamaha has announced consolidated business results for the first quarter of its new fiscal year (period ending March 31, 2020) with net sales for Yamaha of 395.9bn yen (a decrease of 33.5bn yen or -7.8% compared with the same period of the previous fiscal year), and operating income of 25.4bn yen (a decrease of 10.5bn yen or -29.2%).
"Net sales have been greatly affected by the COVID-19 (novel coronavirus) pandemic since March, and therefore income has decreased due to the lower number of units sold in the Land Mobility Business and Marine Products Business.
"Operating income declined due to the impact of foreign exchange rates, a decrease in the number of outboard motor units sold in the Marine Products Business, and the impact of Yamaha Motor Robotics Holdings Co., Ltd. (YMRH), which became a subsidiary at the end of the second quarter of the previous fiscal year."
Motorcycles ("Land Mobility" Division)
Net sales were 260.3bn yen (a decrease of 19.1bn yen or -6.8 % compared with the same period of the previous fiscal year), and operating income was 8.6bn yen (a decrease of 0.7bn yen or -7.4%).
Unit sales of motorcycles in developed markets decreased due to the impact of the COVID-19 pandemic from March, resulting in a decline in sales. However, the deficit was narrowed due to an increase in unit production at headquarters and in Europe, along with improvements in the model mix for Europe.
In emerging markets, sales and income from motorcycles have declined due to factors such as the deterioration of the model mix in Vietnam, decreased demand due to the introduction of new emission regulations in India, and the impact of the COVID-19 pandemic. The Philippines have also seen declines due to the effects of its volcanic eruption and the COVID-19 pandemic. As a result, there was an overall decrease in sales and income in the Land Mobility Business.
Yamaha says that the impacts of the coronavirus pandemic had already led it to withdraw its forecasts of February 12 and make a new announcement when circumstances permit. Meanwhile, in terms of the interim dividend at the end of the second quarter (June 30, 2020), the board of directors has decided to forgo the dividend in view of the market environment and the business conditions of the company. With regard to the undecided end-of-term (December 31, 2020) dividend forecast, they will make a new announcement when circumstances permit.
Meanwhile, in other news…
Manufacturing at the Motori Minarelli engine factory in Calderara di Reno, Italy, and the MBK Industrie assembly plant in Saint Quentin, France, recommenced on May 4th, having been temporarily suspended on March 16th.
Eric de Seynes, Yamaha Motor Europe President and CEO, said: "The reopening of both motorcycle, scooter and engine production plants we have in Europe is positive news within a very complicated period we are experiencing. It has been possible thanks to the cooperation with all parties involved, which I sincerely want to thank."
In Japan, all Yamaha business locations, factories and offices had an additional temporary closure at the same time for the five days between June 8 and 12, having already determined additional suspensions to operations for ten working days from May 25 to June 5 at some motorcycle-related production sites.
Yamaha Motor Europe has also announced a three-month extension on all factory warranties and official extended warranties that expired between 1st March and 31st May 2020.
Additionally, the Yamaha NIKEN motorcycle fleet provided by Yamaha Motor Europe to support cycling's three Grand Tours - the Giro d'Italia, Tour de France and La Vuelta - has been released to the Red Cross in Italy to help mobility as they continue to respond to the health emergency.
