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Outline of Performance for the Interim Period of FY2008.3
and Outlook for the FY2008.3 as a Whole
(Supplementary Information) |
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| Performance for the Interim Period—Increases Year on Year in Sales and Operating Income |
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Consolidated net sales for the interim period of FY2008.3 rose 6.1% year on year, to ¥280.7 billion, as a result of the effect of the weakening of the yen against major currencies, the strong performance of the musical instruments business, mainly overseas, and higher sales of automobile interior wood components and certain other businesses. Consolidated operating income surged 53.9%, to ¥21.3 billion, owing to a marked increase in the musical instruments and components businesses. Although operating income rose, consolidated recurring income declined 5.8%, to ¥21.6 billion, as a consequence of the exclusion of affiliate Yamaha Motor Co., Ltd., from consolidation under the equity method because of the sale of a portion of the Company’s shareholdings in Yamaha Motor, which led to a decline in equity in earnings of unconsolidated subsidiaries and affiliates. Interim consolidated net income, however, surged 76.3%, to ¥30.8 billion, as the Company reported an extraordinary gain from the previously mentioned sale of Yamaha Motor shares.
Please note that in comparison with the Company’s outlook released on August 1, 2007, consolidated net sales were virtually the same as the figure announced in the outlook, but operating income was significantly above target because of the effect on gains on foreign exchange, improvement in the gross margin on net sales, and other factors. In addition, recurring profit and net income were above the levels announced in the previous outlook.
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| Sales and Operating Income by Product Segment |
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| (Figures in parentheses are changes year on year.) |
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Musical Instruments
Sales of ¥170.8 Billion (+8.5%) and Operating Income of ¥18.0 Billion (+64.3%)
Sales of pianos were robust in Europe and Asia (outside Japan), including China. Among electronic musical instruments, sales of digital pianos and other products were strong in overseas markets, and sales of commercial audio equipment expanded substantially overseas. In addition, sales of wind instruments held firm. Among other sales categories, revenues from educational services, including music and English-language schools, were at about the same level year on year, but revenues from content distribution were down because of the shrinkage of the mobile phone ring-tone market. For this segment as a whole, sales increased year on year. Operating income posted a marked rise over the same period of the previous year because of the gain in sales and the positive effect of currency exchange rate movements.
AV·IT Products
Sales of ¥33.7 Billion (–3.2%) and Operating Income of ¥0.8 Billion (+8.1%)
In audio products, sales of AV receivers in the North American market weakened, and sales of commercial karaoke equipment declined, resulting in an overall drop in segment sales. Operating income rose year on year, owing to an improvement in the gross margin on sales including the positive effect of currency exchange rate movements.
Electronic Equipment and Metal Products
Sales of ¥27.9 Billion (+1.3%) and Operating Income of ¥1.8 Billion (–19.4%)
In the electronic metal products business, sales increased due to price increases that reflected high raw material prices, but, in the semiconductor business, sales declined because of lower demand for LSI sound chips for mobile phones. Overall, sales of the segment were approximately the same year on year. Operating income dropped from the level of the same period of the previous year because of lower semiconductor sales and lower gross margins.
* As of March 20, 2007, a basic agreement was reached among the Company, Dowa Holdings Co., Ltd., and Dowa Metaltech Co., Ltd. to sell 90% of the shares held by the Company in Yamaha Metanix Corporation, a consolidated subsidiary engaged in the electronic metal products business. The transfer of shares is scheduled to take place on November 30, 2007.
Lifestyle-Related Products
Sales of ¥22.9 Billion (+1.8%) and Operating Income of ¥0.3 Billion (–20.2%)
Sales of system bathrooms decreased because of the decline in prices accompanying increased market competition, but sales, mainly of moderately-priced system kitchen models featuring artificial marble sinks, increased. Sales for the segment as a whole posted a slight increase year on year. Operating income declined as a result of lower gross margins on sales accompanying the rise in material prices and declining sales prices.
Recreation
Revenues of ¥8.7 Billion (– 4.1%) and an Operating Loss of ¥0.7 billion (versus an operating loss of ¥0.6 billion for the same period of the previous year)
The number of customers at the Group’s golf courses remained at about the same level as in the same period of the previous fiscal year, but the number of persons staying at Group lodging and the number of day visitors using its facilities declined, resulting in a decrease in revenues. Along with the decline in revenues, the operating loss increased.
* As of September 20, 2007, a basic agreement was reached with Mitsui Fudosan Resort Co., Ltd., regarding the sale of stock and assets of the Group’s recreation business, and, on October 1, 2007, the Group transferred equity ownership in commercial properties and operating companies of four of its recreation facilities (Kiroro, Toba Hotel International, Nemunosato, and Haimurubushi).
Others
Sales of ¥16.7 Billion (+25.9%) and Operating Income of ¥1.0 billion (versus operating income of ¥90 million for the same period of the previous year)
In the golf products business, total sales expanded due to growth in domestic sales and exports. In the metallic molds and components business, sales of magnesium molds and plastic parts both increased, and automobile interior wood components posted a major increase in sales. The segment as a whole reported a marked rise in sales, and, along with this, profitability improved.
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Outlook for FY2008.3
Upward Revision of the Outlook Issued on August 1, 2007 |
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Regarding the outlook for the full fiscal year ending March 31, 2008, although there are uncertainties, including concern about a slowdown in the U.S. economy, the musical instruments business reported gains in the first half of the fiscal year, and further improvements are expected in other businesses in the second half of the fiscal year. The previous forecast, issued on August 1, called for net sales of ¥557.0 billion, operating income of ¥32.0 billion, recurring profit of ¥30.0 billion, and net income of ¥35.5 billion. In the revised forecast, the outlook for net sales has increased to ¥558.0 billion, the outlook for operating income has been increased to ¥33.5 billion, the forecast for recurring profit boosted to ¥32.0 billion, and the forecast for net income raised to ¥38.0 billion.
Note: Figures in the text have been rounded to the nearest 0.1 billion.
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For further information, please contact
Yamaha Corporation
Public Relations Division, Public Relations Group
TEL. +81-3-5488-6601
FAX. +81-3-5488-5060
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Consolidated Basis