Yamaha posted its first quarterly loss in 4 years. Since Yamaha gets 90 percent of its revenue outside of Japan, the strong yen didn’t help.
The company had a fourth-quarter loss of 41.65 billion yen ($467 million) compared with a net income of 3.73 billion yen in the year-earlier period.
Full-year net income fell 98 percent to 1.5 billion yen compared with 71.2 billion yen in 2007, the company said in a preliminary earnings report today. Sales dropped 9 percent to 1.6 trillion yen.
Ouch …
As Honda retrenches and Harley makes adjustments, Yamaha’s report isn’t surprising, it’s just one more sign of a little rough road ahead for the motorcycle manufacturers.
Any company may make some poor choices in product mix or business planning, but this downturn is affecting everyone so it’s hard to point at any one company’s actions and place all of the blame on them for their sales decline. However, it’s a lot easier to make big money and sales during good times, it is the real business skill and creative ideas directing what each company does right now that will determine how quickly they recover as the economy turns around. Now THAT will be interesting to watch.
Link: Bloomberg
Tin Man 2 says
The abuses of the financial sector have brought on these problems, Not the products. Mr.Slider, you are correct, it will be exciting to watch the recovery plans as they come forward, lets hope the world gets back on track soon.
Phoebe says
Again…I’m not surprised at all to see this. I’m sure *all* motorcycle companies are suffering right now.
Jeff says
I wonder how the repair business is doing since some will be hanging on to their bike ? Also , how is the used motorcycle market as some sell their bikes for cash after a job loss ? It all ties in together . The HD dealer close to my home wasn’t taking any trades for awhile because there was excess inventory . Any thoughts ?
Jim says
The used bike market seems to be weak also. A lot of people selling while the lack of credit and job worries keep potential buyers at bay. If you have cash there are deals to be had.
LN says
With Yamaha’s broad-range of low $$–but high quality–scoots and enduros, I see them as being one of the more resilient brands in this economic hailstorm.
todd says
as for used bikes, there’s a glut of XR50’s and PeeWees. Everyone seems to be selling off their toys and keeping their bikes for cheap transportation.
-todd