Yamaha Motor Co has set new records for revenue and income for the first half of 2024 for the second year running, but marine sales decreased.
Revenues were 297.7 billion yen (a decrease of 1.3 billion yen or 0.4% compared with the same period of in 2023) for the Marine Products Business segment and operating income was 53.2 billion yen (a decrease of 12.6 billion yen or 19.2%).
Outboard motor demand in Central and South America continued to be strong, but in North America and Europe, rising prices and interest rates led to a decline in demand.
However, demand for large horsepower outboards in North America remained stable.
Unit sales of new outboard models were positive, but sales were lower for the outboard business overall.
Demand for larger outboard motor models is expected to continue to decline in Europe and the US.
For personal watercraft, unease about rising interest rates made customers hesitate to purchase and demand decreased, but unit sales increased thanks to improvements addressing last year’s lack of parts and supply chain disruptions, which had forced the Company to place limits on product supply.
Demand levels
As a result, sales and profits fell for the Marine Products business overall. Also, Yamaha Motor’s half-year consolidated business results include the performance recorded by German electric marine propulsion manufacturer Torqeedo GmbH during its second quarter consolidated accounting period (April–June 2024).
High prices and interest rates are affecting demand levels for Yamaha and uncertainty is also being caused by anticipations of interest rate cuts rise in the US and fluctuations in foreign exchange rates.
The fierce competitive environment is expected to continue due to product supply improvements by Yamaha as well as its competitors, declining levels of demand, and other effects.
Ocean freight rates are continuing to rise while raw material costs are generally in line with forecasts, excluding the effects of foreign exchange rates.
A recovery in demand is expected for the Robotics business in the second half of 2024.
