Yamaha Motors reports drop in shipments for outboards as US demand wanes
Yamaha Motor Co. Has announced its consolidated business results for the first nine months of fiscal 2024.
“Our results for the third quarter saw us record higher revenue year on year, but operating income was about the same as last year,” says Katsuaki Watanabe . . . the man who holds the enviable title of chairman and director, and president, CEO and representative director.
“Sales and profits in the marine products business fell due to ongoing production adjustments aimed at optimising inventory levels and from fewer outboard motor shipments.”
Within the marine products business, revenues were 415.5 billion yen (a decrease of 15.8 billion yen or 3.7 per cent compared with the same period of the previous fiscal year) and operating income was 79.3 billion yen (a decrease of 5.0 billion yen or 5.9 per cent).
In terms of outboards, the United States (the company’s main market) saw decreased demand. Watanabe puts this down to still high level of interest rates in general, as well as ongoing price raises.
Unit sales of new Yamaha outboard models were positive, but sales were lower for the outboard business overall.
In the US, subsistent high interest rates also made customers hesitate to purchase personal watercraft, and demand decreased. Despite this lower demand showing effects in the third quarter period, unit sales increased thanks to improvements addressing last year’s lack of parts and supply chain disruptions, which had forced Yamaha to place limits on product supply. But, sales and profits fell for the marine products business overall.
Yamaha Motor’s third quarter consolidated business results include the performance recorded by German electric marine propulsion manufacturer Torqeedo GmbH during the period of April to September 2024.
Yamaha competing on ‘severe’ playing field
Watanabe says the situation each of the Yamaha’s business segments is facing is different, but that competitors have improved their product supply operations. Plus, there’s lower demand levels, and other factors, which means he expects the competitive playing field to remain severe.
“On top of that, the prices and rates for ocean freight, raw materials, labor, and more are on the rise, so we will need to properly keep costs in check.”
All this means that Yamaha has revised its business results forecast for fiscal 2024 downward.
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