YAMAHA AIMS FOR 100 BILLION PROFIT
July  20 2005.
Yamaha Motor Co.'s group operating profit is expected to reach the 100 billion yen milestone for the year ending Dec. 31, some 10 billion yen more than initially forecast, on stronger-than-expected motorcycle sales in Southeast Asia.
Sales are also projected to be solid for such core products as all-terrain vehicles and outboard motors. And a weaker-than-expected yen is seen offsetting a surge in materials costs.
Group sales for fiscal 2005 are estimated to total roughly 1.28 trillion yen, up about 50 billion yen from an earlier projection. Yamaha's previous fiscal year was nine months long due to a change in its accounting schedule. Compared with the 2004 calendar year, sales are seen climbing 9% for the year ending Dec. 31. On the same basis, operating profit is forecast to rise 13%.
The domestic motorcycle segment continues to slump, but overseas sales are robust. While the initial sales target for Indonesia, Thailand and Vietnam was 1.67 million units, the figure is now projected to reach 1.88 million.
A weaker-than-anticipated yen is estimated to have boosted profit by 5 billion yen in the first half alone. This will help to absorb the higher cost of steel and other materials projected to lower profit by 7-8 billion yen -- more than the roughly 5 billion yen initially forecast.
On Tuesday, Yamaha revised its parent-only projections for the half ended June 30. Sales were revised upward from 320 billion yen to 363 billion yen, and pretax profit was adjusted from 9 billion yen to 11 billion yen.

Source: The Nihon Keizai Shimbun