Net sales increased 11 percent from the previous year, to 1,756.7 billion yen ($16.4 billion). Operating income rose 2.8 percent, to 127.0 billion yen ($1.2 billion) and ordinary income climbed 11.9 percent, to 140.3 billion yen ($1.3 billion). All the figures broke records for the company. However, net income decreased 7.8 percent to 71.2 billion yen ($666 million) during the fiscal year. Yamaha indicated the fall was due to a special provision for an accrual for product liabilities.

Motorcycle sales increased 15.5 percent from the previous fiscal year, exceeding one trillion yen for the first time in company history at 1,056.2 billion yen ($9.9 billion), thanks to favorable sales in Indonesia, Vietnam and Brazil.

Marine product sales rose 8.8 percent, to 289.9 billion yen ($2.7 billion), reflecting steady increases in PWC sales in the United States and outboard motor sales in Europe.

Power product sales climbed 6.1 percent, to 265.6 billion yen ($2.5 billion), due mainly to a significant sales increase in side-by-side vehicles in the United States, although all-terrain vehicle sales decreased there.

Negative factors affecting operating income include an increase in selling, general and administrative expenses from the previous year; a change in the product mix; an increase in research and development expenses; hikes in raw material prices; and an increase in depreciation expenses.

The negative factors were offset by the positive impact of an increase in exchange translation, an increase in gross profit due to sales expansion and cost reductions in procurement operations.

Reprinted with permission from Powersports Business.