Yamaha Motor's Jan-Sept profit hits record on brisk motorcycle sales - UPDATE

TOKYO, Oct 30, 2007 (Thomson Financial via COMTEX) -- YAMHF | charts | news | PowerRating -- Yamaha Motor Co Ltd, the Japanese maker of motorcycles and luxury boat engines, said Tuesday its net profit rose 13 percent in the nine months to September, buoyed by strong overseas sales of motorbikes and the weaker yen.

The company posted a record net profit of 67.49 billion yen, which compared to a 59.64 billion yen result in the same period last year.

Operating profit increased 8.6 percent to a record 97.85 billion yen as revenue rose 13.6 percent to 1.33 trillion yen, an all time high.

"Brisk sales of our motorbikes in Asia and Central America and the benefit of a weak yen helped us absorb the adverse impact of higher procurement costs," Yamaha Motor finance division general manager Kozo Shinozaki said at a news conference.

Global motorcycle sales for the January-September period rose to 3.724 million units from 3.290 million a year earlier, led by strong sales in Indonesia and Vietnam.

Yamaha is aiming to sell 5.013 million motorcycles for the whole of 2007, higher than the original plan to sell 4.889 million units.

In Indonesia, motorcycle sales climbed to 1.406 million units in the period from 1.103 million a year ago, bringing its market share to 41 percent from 35 percent a year earlier.

But the company saw a decline in retail sales of its motorbikes in the US to 148,000 units in the period from 151,000 units a year earlier, due to the deterioration of the US economy and the adverse impact of the subprime loan crisis on credit.

"In line with the decline in demand, sales of cruzers (big bikes with engine displacement of over 1000cc) fell 9.2 percent in the January-September period from a year earlier," Shinozaki said.

"To optimise inventory levels of our motorbikes in the US, we are now trying to squeeze the supply to dealers," he said. "Having said so, I do not think we will see further fallout from higher inventory, which is still at a manageable level."

Meanwhile, the weak yen pushed up the company's nine month operating income by 33.1 billion yen from a year earlier, as the export hedging rate came to 118 yen against the dollar and 153 yen against the euro. In the corresponding period last year, the dollar averaged 114 yen and the euro averaged 139 yen.

For 2007, the company is projecting a net profit of 79.5 billion yen and operating profit of 129 billion on revenue of 1.70 trillion yen, in line with guidance provided in July. All will be record numbers, if achieved.

The forecasts assume the dollar will average 118 yen and the euro will average 155 yen.

Prior to the release of its results, Yamaha closed the morning session up 30 yen or 0.9 percent at 3,210 yen.

(1 US dollar=114.51 yen)

Yasuhiko.Seki@thomson.com

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