Yamaha Reveals New Three-Year Plan

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Japan's Yamaha Motor Co., Ltd. says net sales for its year ended December 31, 2007, totaled ¥1.756 trillion ($16.43 billion), up 11 percent from sales of ¥1.563 trillion ($14.63 billion) in 2006. The company sold 4,997,000 motorcycles worldwide in 2007, up 13.1 percent from 4,419,000 units sold in 2006.

Motorcycle revenue, led principally by favorable sales in Indonesia, Vietnam and Brazil, increased 15.5 percent to ¥1.056 trillion ($9.88 billion); marine product revenue rose 8.8 percent to ¥289.9 billion ($2.71 billion), reflecting steady increases in personal watercraft sales in the United States and outboard motor sales in Europe; and revenue from power product sales — including ATVs and SSVs — climbed 6.1 percent to ¥265.6 billion ($2.48 billion), due mainly to a significant sales increase in SSVs in the U.S.

Outlook
Yamaha says it expects to end 2008 with net sales of ¥1.830 trillion ($17.13 billion) and net income of ¥5.9 billion ($55.21 million).

The company's new medium-term management plan for the three-year period from 2008 through 2010 calls for the manufacturer to achieve ¥2.1 trillion ($19.65 billion) in net revenue, ¥143 billion in operating income and sales of 7.78 million motorcycles for the fiscal year ending December 2010. In North America, the plan is to strengthen competitiveness in mature markets and improve profitability.

The previous medium-term management plan, NEXT50-Phase II, ran from 2005 through 2007. During the period, Yamaha Motor implemented a business strategy designed to balance value, profitability and growth. Yamaha says the NEXT50-Phase II plan brought the company to ¥1.76 trillion ($16.47 billion) in net sales and ¥127 billion ($1.19 billion) in operating income, exceeding the targets of ¥1.45 trillion ($13.56 billion) and ¥120 billion ($1.12 billion), respectively.