Yamaha U.S. Retail Sales Drop 40% in 3Q

 

 

 

By:  Arlo Redwine

In the third quarter, U.S. retail unit sales of Yamaha motorcycles, scooters, ATVs and side-by-sides fell 40 percent compared to the same period last year. But the decline was an improvement over the 54 percent fall recorded for the second quarter.

The numbers were released today by Yamaha Motor Corp. in its financials for its third quarter ended Sept. 30. The company approximated retail sales in the U.S. by unit type:

  • Motorcycles and scooters: 22,000 units retailed in 3Q, a decline of 41 percent compared to the same period last year. In the first quarter, 21,000 were retailed (down 30 percent). In the second quarter, 32,000 (down 59 percent). This sharp 2Q decline likely reflected last year’s spike in small-displacement sales due to gas prices, which provided a high summit from which to fall. For the first nine months of 2009, Yamaha dealers sold 75,000 units, a drop of 48 percent.
  • ATVs: 14,000 units retailed in 3Q, a decline of 33 percent compared to the same period last year. In the first quarter, 17,000 units were retailed (down 26 percent). In the second quarter, 19,000 units (down 32 percent). For the nine months, Yamaha dealers sold roughly 50,000 units, a 31 percent fall.
  • Side-by-sides: 4,000 units retailed in 3Q, a decline of 56 percent compared to the same period last year. In the first quarter, 4,000 units were retailed (down 56 percent). In the second quarter, 2,000 units (down 78 percent). For the nine months, Yamaha dealers sold roughly 10,000 units, a drop of 63 percent.

Yamaha’s sales to U.S. dealers fell greatly in the third quarter. Yamaha wholesaled 5,000 two-wheelers, 6,000 ATVs and 1,000 side-by-sides, which correspond to year-over-year declines of 78 percent, 74 percent and 91 percent, respectively.

At the end of September, U.S. motorcycle inventory (at Yamaha warehouses and dealerships) stood at 101,000 units. Last year at this time, Yamaha reported 96,000 units.

ATV inventory was 43,000 units at the end of September, a sharp fall from 77,000 last year.

For the nine months ending Sept. 30, Yamaha Motor Co. had net sales of 859 billion yen ($9.04 billion), a decline of 33 percent. But here’s the kicker: During the period the company suffered a net loss of 159 billion yen ($1.67 billion), or about 19 percent of net sales. In comparison, the company posted a slight profit of 43 billion yen during the same period last year.

The large net loss led to the resignation this month of Yamaha Motor’s president. The company’s chairman took over the position.

Reduced sales led to Yamaha’s operating income to decline by 45 billion yen. But even more important to the bottom line was an “extraordinary loss” of 74 billion yen attributed to “business structure improvement expenses.” Through Yamaha’s ongoing “Urgent Action Program,” the company has been aggressively cutting expenses, and has temporarily suspended production at its Japanese factories to reduce inventories in the U.S. and Europe.