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Yamaha Motor forecasts record profits

TOKYO - Yamaha Motor Co said it now expects group pretax profit to rise 6 percent on the year to a record 71 billion yen (US$644 million) for the fiscal year ending March 31, 2004, 3 billion yen more than its estimate at the beginning of the year.

The upgrade is a result of brisk motorcycle sales in Asia outside of Japan and growth in mounting equipment for electronic parts.

Consolidated sales are expected to rise 1 percent to 1.02 trillion yen.

Motorcycle sales are seen rising 13 percent to 2.63 million units. While sales in Japan are likely to fall 12 percent to 178,000 units amid intensifying price competition, overseas sales are projected to rise 15 percent to 2.45 million units, with Asian sales seen jumping 25 percent to 1.66 million units.

Yamaha Motor's operating profit from its motorcycle division is expected to rise 19 percent to 24 billion yen.

At the same time, the recovery in parts production for digital electronics is helping lift demand for Yamaha Motor's parts-mounting equipment.

The company expects sales of such equipment to rise 30 percent to 2,120 units.

The division that handles the devices is projected to see a 38 percent rise in operating profit to 9 billion yen.

While the stronger yen is likely to weigh down the company's profit by 4.2 billion yen, Yamaha Motor aims to offset that with cost-cutting measures.

(Asia Pulse/Nikkei)

Nov 8, 2003

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