July 31 2008.

Yamaha announced yesterday that its sales and profits for the quarter ended June declined on year, blaming the yen's strength and higher raw materials costs.

The Japanese motorcycle maker had a net profit of Y3.62 billion in the fiscal second quarter, showing a steep 85% decline from a profit of Y24.43 billion in the same period a year earlier.

Its operating profit tumbled 55% to Y15.59 billion. Its group sales declined 4.3% to Y456.13 billion from Y476.49 billion.

The weak earnings prompted the company to revise down its earnings outlook for full fiscal year ending March 2009. Yamaha lowered its net profit outlook to Y45 billion from Y59 billion. Sales are now pegged at Y1.720 trillion, compared with Y1.830 trillion previously foreseen.

Yamaha bases its results on Japanese accounting standards.

Source: Nikkeinet