YAMAHA IN THE RED
July 4 2009.

Yamaha announced today that it fell into the red for the first half ended June 30 and expects even deeper losses for the full year 2009, revealing pessimism about the global economic outlook as it scales back production.

The motorcycle maker suffered a net loss of Y74.71 billion for the January-June period, compared with a year-earlier profit of Y25.85 billion.

In the second quarter ended June, the company made a net loss of Y58.95 billion, but didn't provide the year-earlier comparison.

Yamaha's operating loss for the first half was Y33.83 billion, compared with a year-earlier profit of Y46.70 billion. Its group sales slipped 33% to Y579.39 billion from Y869.06 billion.

The dismal earnings show how the company is being hit by stagnant demand for motorcycles and leisure boats amid the recession-hit slide in personal consumption in key markets such as the U.S. and Europe.

For the full business year ending Dec. 31, Yamaha now expects an even wider net loss of Y182 billion, compared with a previous forecast of a Y42 billion loss. It also expects an operating loss of Y87 billion, worse than the expected loss of Y30 billion given in its February outlook. Sales are pegged at Y1.100 trillion, down from Y1.250 trillion in the original outlook.


Source: The Nikkei