Yamaha Motor Cuts Profit Forecast on Weak U.S.

[MAINEAC]

Yamaha Motor Cuts Profit Forecast on Weak U.S.

 

 

July 31 (Bloomberg) -- Yamaha Motor Co., the world's second-largest motorcycle maker, reduced its fiscal full-year net income forecast 23 percent because of falling demand in the U.S. for large motorcycles. The shares dropped the most in more than five months.

The company cut its forecast to 45 billion yen ($416.8 million) from an earlier prediction of 59 billion yen, it said in a statement today. Sales will be 1.72 trillion yen, 6 percent lower than the initial forecast.

Yamaha expects its first decline in operating profit in eight years after U.S. sales of Royal Star Venture and Roadliner motorcycles dropped 22 percent in the first half. Record gasoline prices and the lowest consumer confidence in 16 years has eroded U.S. demand for the $17,000 bikes.

``Yamaha is taking a severe hit from the economic downturn in the U.S.,'' said Koji Endo, a senior analyst at Credit Suisse Group in Tokyo, who rates the company ``neutral''. ``Demand for big touring motorcycles and boats is drying up.''

Net income in the second quarter plunged 85 percent to 3.6 billion yen, according to Bloomberg calculations. Sales dropped 4.2 percent in the period.

Yamaha fell as much as 9.7 percent to 1,761 yen as of 12:30 p.m. on the Tokyo Stock Exchange. The shares have fallen 34 percent so far this year compared with a 13 percent drop in the benchmark Nikkei 225 Stock Average.

Motorcycle Sales

Motorcycle sales in Japan dropped 23 percent in the first half. In Europe, sales fell 12 percent. In Asia, excluding Japan, sales gained 27 percent. That failed to boost earnings as the smaller bikes the company sells in Indonesia and Vietnam have lower profit margins. The company said it will cut full-year domestic motorcycle production 20 percent compared with a year earlier in response to the slow-down.

``There's no end in sight to the severe conditions,'' said Kozo Shinozaki, the company's general manager of finance and accounting.

Earnings also fell because of a stronger yen against the dollar and the euro. The stronger currency cut 15 billion yen in operating profit in the first half.

[V7Goose]

Very interesting, but almost beyond my belief! I even did a search myself to verify this wasn't a spoof. The part I have a hard time swallowing is two-fold - motorcycle sales are generally way up because of the fuel prices, not DOWN, and frankly, I just can't imagine Yamahaha mentioning the RSV for ANY reason, but especially claiming that a drop in their minuscule sales could affect anything!

 

Seems to be the biggest joke in the world that they might try to claim their corporate profits hinge on the sales figures for a bike they have tried very hard to keep hidden! And if this thing was so critical to them, why in heck would they have let it stagnate for 10 years without a single update? Oh well, just goes to show I may not know as much as I think I do (but I'm not gonna give in on that point just yet!).

Goose

[Squidley]

Hard to say, either way, I would find it hard to believe that Yamaha would make a claim about the RSV unless thet were doing it purposely to boost interest in perhaps the redesigned 3rd gen

But who knows, Mfgrs have done way dumber things for no apparent reason. I couldn't see Yamaha without a touring bike....but I'm just a dumb welder

[BurgyMon]

Seems to be the biggest joke in the world that they might try to claim their corporate profits hinge on the sales figures for a bike they have tried very hard to keep hidden! And if this thing was so critical to them, why in heck would they have let it stagnate for 10 years without a single update?

 

 

It does sound odd?!

[GigaWhiskey]

They prolly had to come up with something to feed the board for lower sales numbers or the money spent for R&D on the new VMax and motor.

[TEW47]

Could be their way of saying NO MORE VENTURES.

 

tew47

[Guest Boomerbiker]

Now that is an interesting bit of propaganda given the fact the RSV has never really been advertised and has been around for 10 years with cosmetic changes and known issues, especially the cricket transmission and disposable rear shock. Try to find one in inventory at dealers in my area and they are far and few between. Have seen a couple of RSTD's, but the excuse is pretty lame. The company's website finance interest rate isn't exactly competitive with Honda, either. It will be interesting to see the market for the highly touted V-Max using the economy as a crutch. There aren't too many Venture buyers looking for a redesigned V-Max.

[Redneck]

I would be willing to bet the vast majority of manufacturers of any product world wide are seeing declines in sales. The U.S is the worlds biggest consumer and our economy is in a major slow down for a variety of reasons.

[Carbon_One]

As the article notes it's the big bikes that are taking the hits. Due to their higher costs as well as the US economy in a down turn. Fewer people purchasing expensive items of this nature. Now you take the entry level bikes and they're selling them. Perhaps not as brisk as they'd like of course. Used bike market is soaring thou.

Another reason for lagging sales is the credit industry is drying up. Fewer lending institutions willing to stick their neck out on questionable buyers.

At any rate I'll 2nd Goose's observations.

Larry

[IH Truck Guy]

Could be their way of saying NO MORE VENTURES.

 

tew47

 

That's right..Then they will come out with the TOP-SECRET V-MAX that has saddlebags but no trunk,looks like a Harley Roadglide and runs on bio-diesel...:crackup::crackup:

[CrazyHorse]

Scooter sales are way up according to a local dealer. Harleys hurting too local delear was saying competing dealers were selling $1500 below sticker. Why pay $20,000 + for a bike that doesnt get much better mileage then a car unless your really into them. Lots of job losses fuel and other items getting nickel and dimed to death many people dont have the money to spend. Be interesting to see if they emphasize scooters like car companies to smaller cars. Be interesting to see if a 650 or 750 will be the "big" bike like in the days of old.

Edited July 31, 2008 by CrazyHorse

[KiteSquid]

Everybody go out and buy a new RSV!!!!!!!!

[BuddyRich]

http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aUcRxCgQOLdo

 

Yea, But EVERYBODY is losing money right now unless your sellin oil.

[Mariner Fan]

I'm getting a bad feeling that the Venture motorcycle is dead. Not sure if they will come out with a third gen or not.

[MAINEAC]

Sorry I forgot to post the link to the website... Bloomburg is credible tho..

[Royal Venturer]

It goes to show you where they make profit. The RSV, RSTD and Roadliner make the largest margin even though they sell less volume with the RSV, although the roadliner is always in abundance at any yamaha dealer you go to.. This is how they spin their press releases by going with the numbers of high loss....the stock purchaser thinking the value is down now but will rise as the market is really shifting to more motor cycles being sought out in the future because of fuel savings. Thus, they buy into a company with proven growth.

Just my musings!!!

[FreezyRider]

I'm getting a bad feeling that the Venture motorcycle is dead. Not sure if they will come out with a third gen or not.

 

 

I'm betting that the 3rd Gen Venture will just be a 2nd Gen Stratoliner.

Time will tell.

 

Joe

[rod]

You all are forgetting the off road,jet boat, RV market. Here in so cal that is where the money is and NO ONE is going out right now with the gas prices being what they are not to mention the housing problems. If you want a dune buggy,quad,dirt bike,toy hauler,RV or truck you can get them dirt cheap. A very large part of the dealer business is toy related not road bikes. Few people are taking their toys out due to the price of gas. Scooter and small bike sales are way up but big bike sales are down.Most students these days are only interested in saving gas money not riding. Rod

[Lone Eagle]

I aam hoping that the "bigger" bikes are not on the way our with Yamaha/STAR. I was surprised to see the Roadliner mentioned along with the RSV. Like many others have said, you never see and ad for the Venture (or for my bike the RSTD), you see some for the Road/Stratliner. And, after watching a friend of mine just plunk down 40K for a new screaming eagle, I am wondering why STAR/Yamaha don't get more agressive with their marketing for the RSV (oh yea, the cassette deck). I would think those in the market, unless truly loyal for the Harley Brand/image, would possibly look at a RSV, Wing, or whatever.

I know around here, you won't find many - or any - big bikes on the dealer floor. Mostly, 1100's and below, dirt bikes, etc.

[Condor]

Could be their way of saying NO MORE VENTURES.

 

tew47

 

Could very well be their way to rattle the cage to get people to buy up the last remaining '08 cruisers to make room for a redesigned 2010 cruiser. As far as I'm concerned it's all hype, smoke, and mirrors...

I also find it very hard to believe that they are hanging their economic hat on their big bike sales when there were very few on display in their dealer network, instead of pointing their finger at the world economy.

Something's not right..... But hey it's their company. They can do what ever they dam well please...