Yamaha Motor Co, the world's second-largest motorcycle maker, said its fourth-quarter profit totaled ¥10.4 billion (US$87.9 million), as it boosted sales of its two-wheeled vehicles in Southeast Asia and outboard motors in Europe.
Sales increased by 32 percent to ¥374 billion in the three months ended Dec. 31 from ¥284 billion in the same period a year ago, Yamaha said in a release yesterday
Surge
Fourth-quarter operating profit, or sales minus the cost of goods sold and selling, general and administrative expenses, surged 74 percent to ¥22.6 billion.
Yamaha, which competes with Honda Motor Co and Suzuki Motor Corp, is expanding in Southeast Asia, North America and Europe.
The company, based in central Japan's Shizuoka Prefecture, is trying to increase its share of the global motorcycle market to 12 percent in 2007 from 9.9 percent in 2004.
"Yamaha's motorcycle business remains strong," said Fumiyasu Sato, chief executive at Milestone Asset Management, a Tokyo-based investment adviser.
"Demand continues increasing in Asia outside Japan" as economic expansion will boost the number of people who can afford motorcycles, Sato said.
No year-earlier comparison for net income was available because it's the first time Yamaha has reported earnings based on the calendar year. Previously, its business year began in April.
The company's sales and operating profit figures for the three months ended Dec. 31, 2004, were unaudited and were provided as a reference.
The company wrote down the value of a subsidiary in India and took a ¥3.4 billion charge for the unit.
Share rise
Yamaha shares, which doubled in 2005, rose 1.4 percent to ¥2,930 at the 3pm. close in Tokyo.
Yamaha forecasts net income to rise 1.5 percent to ¥65 billion for the year ending Dec. 31.
Sales may increase 5.4 percent to ¥1.45 trillion, thanks to rising demand for motorcycles in overseas markets, while operating profit may surge 11 percent to ¥115 billion, Yamaha said.
The motorcycle maker based its earnings forecast on the yen to average 112 per dollar and 136 per euro, Yamaha said.
A weaker yen may add ¥15.9 billion to the company's operating profit for 2006, it said.
Every ¥1 drop against the dollar will increase Yamaha's operating profit by ¥2.2 billion, while every ¥1 decline to the euro will boost it by ¥1 billion, the company said.
Yamaha expects to raise its global motorcycle sales by 18 percent to 4.55 million units in 2006 from 3.85 million last year.
Overseas sales may gain 19 percent to 4.39 million units, making up for an estimated 4.2 percent drop in domestic sales.
The maker of Majesty scooters derives about 56 percent of sales from its motorcycle business.
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