Yamaha posts Q1 results as marine sales fall

Yamaha Motor Co has announced its consolidated business results for the first three months of the year.

Overall revenues for the period were ¥642.1bn (US$4.1bn), an increase of 5.9 per cent compared with the same period of the previous fiscal year.

Operating income was ¥78bn ($501m), an increase of 2.7 per cent. Net income attributable to owners of parent was ¥56bn ($360m), an increase of 12.7 per cent.

“In contrast to last year when outdoor recreation was booming, we had strong demand across almost all our businesses, and replenishing inventory was a priority,” says Yoshihiro Hidaka, Yamaha‘s president, chief executive and representative director.

“The business environment has heavily swung in the opposite direction and the first quarter of fiscal 2024 has been marked by concerns of an economic recession and the return of intense competition as market inventories have increased.

“Amidst these developments, our core business of motorcycles led the way, securing the company higher revenue and profits.”

Revenues in the firm’s marine products business were ¥141.9bn ($918m), a decrease of 2.5 per cent compared with the same period of the previous fiscal year, and operating income was ¥25.5bn ($164m), a decrease of 31 per cent year on year.

Yamaha issued a statement saying that in China, Brazil, and other emerging markets, demand continued to be strong in the commercial fishing and tourism markets. Meanwhile, in North America and Europe, concerns of an economic recession led small and midrange outboard motor demand to decrease, but demand for large horsepower outboard motors remained stable.

The statement attributes unease about rising interest rates to a decrease in demand for personal watercraft. As a result, sales and profits fell for the marine products business overall.

For the fiscal year ending 31 December 2024, the firm predicts revenue of ¥2.6tn ($16.7bn), operating income of ¥260bn ($1.7bn) and net income of ¥175bn ($1.1bn).

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