Yamaha Reports 2012 Results
Yamaha reported a 5.4% decrease in net sales for 2012 and a 72.2% decrease in profit but the Japanese manufacturer says it is poised for a dramatic recovery as it begins its “New Medium-Term Management Plan” for 2013-2015. Coinciding with the start of its new business plan, Yamaha is adopting a new brand slogan: “Revs your Heart“.
The company reported net sales totaling 1,207.7 billion yen (US$13 billion) for the 12 months ended Dec. 31, 2012, down from net sales of 1,276.1 billion yen for the year prior. Yamaha also reported a profit of 7.5 billion yen (US$80.5 million) in 2012, compared to a net income of 27.0 billion yen in 2011. Yamaha attributes the decreases to the rising value of the Yen as well as decreasing demand for motorcycles in Europe, Indonesia and Brazil and an adjustment in stock levels in emerging markets.
Yamaha reports sales of 6.09 million motorcycles and scooters in 2012, down from 6.98 million units in 2011. Two-wheeler sales generated 798.7 billion yen (US$8.59 billion) in sales revenue for Yamaha in 2012, compared to revenues of 887.6 billion yen in 2011. The drop in sales revenue translated to a loss of 200 million yen (US$2.1 million) from Yamaha’s motorcycle business in 2012 compared to a profit of 27.6 billion yen the motorcycle division reported the previous year.
North American consumers accounted for sales of 62,000 motorcycles and scooters in 2012, a 2% decrease from 64,000 Yamaha motorcycles sold in 2011.
Yamaha is predicting a better result for 2013, thanks to its New Medium-Term Management Plan which calls for the introduction of 250 new products from 2013 to 2015 across Yamaha’s many lines including motorcycles, marine products, power products and industrial machinery. Yamaha will introduce 65 of those new products in 2013 with motorcycles accounting for nearly half that number. The new motorcycle products will include models for both emerging markets and developed markets such as the U.S. and Europe.
For developing markets, Yamaha will focus on introducing new fuel-injected models to Asian markets and scooters for India. Brazil will also see a whole new lineup from Yamaha. Meanwhile, developed markets will see new products from different segments including sportbikes, cruisers and motocross bikes.
Yamaha forecasts U.S. sales to increase to 64,000 units in 2013, eventually leading to sales of 89,000 units by 2015. Yamaha bases this forecast on the introduction of new products as well as an increase in overall demand in the U.S. market to 600,000 units in 2015 from 452,000 units in 2012. Worldwide, Yamaha forecasts sales of 6.95 million units in 2013.
The influx of new products should lead to an increase in sales with Yamaha forecasting net sales of 1.4 billion yen in 2013 and 1.6 billion yen by 2015. The longer-term goal is to reach net sales of 2.0 billion yen by 2017.