Yanmar Announces FY2011 Interim Business Results Forecast
November 22, 2011
Yanmar Co., Ltd.
Yanmar announced the FY2011 interim business results forecast at the Osaka Head Office on November 22, 2011, as follows:
1. Yanmar Group FY2011 1st Semester Business Results (April-September 2011):
In the 1st semester of FY2011, our operations were focused on a timely recovery after the tragic Great East Japan Earthquake and Tsunami and realignment of our businesses to meet the newly created market environment. Restrictions on the use of electricity imposed by the domestic authorities as a consequence of the nuclear disaster at the Fukushima power plant had a huge impact on the national production, affecting the manufacturing and supply processes and making it necessary to come up with measures to offset their effect. Instability in the European financial markets combined with the sharp and continued appreciation of the yen have also severely affected profit margins of export-dependent manufacturers.
In the Asian emerging markets, especially China, internal demand has been increasing, but the overall growth rate is below forecasted levels, requiring closer monitoring of the latest trends and a flexible approach to best meet them. In Europe, we have been faced with a sluggish economic recovery and the ongoing sovereign debt crisis which has caused local governments to be cautious about financing further deficits and servicing existing high debt levels. In North America, business risk has increased as a consequence of a weak response to the economic stimulus plans, high unemployment and the declining housing market.
Against this unfavorable economic background, the Yanmar Group has continued assertive activities aimed at meeting the targets of its Midterm Business Strategy, scheduled to finalize in 2015.
Among the major activities carried out were achieving profit, creating a business structure that ensures profitability, reducing expenses and manufacturing costs, and improving the after-sales service business.
Towards overseas market consolidation, we focused on the creation and implementation of reinforced strategies for the Chinese and Southeast Asian regions.
These undertakings led to the achievement of the following consolidated results: Net Sales of ¥270.6 billion, ¥18 billion more than in FY2010, Ordinary Profit of ¥15.3 billion, ¥4.4 billion more than in FY2010, Net Sales Ratio of 5.7%, Gross Profit of ¥8.1 billion, ¥1.8 billion more than in FY2010, Overseas Net Sales of ¥119.1 billion, ¥16.7 billion more than in FY2010 and an Overseas-derived Sales Weight of 44.0%.
Note: "FY2010" indicates here the first semester of FY2010, April-September 2010.
2. Yanmar Group FY2011 Business Results Forecast:
For FY2011, we expect consolidated Net Sales of ¥530.5 billion, 6.3% more than in FY2010, Operating Profit of ¥19.6 billion, 1.6% more than in FY2010 and Ordinary Profit of ¥17.8 billion, 3.3% more than in FY2010.
Note: The above forecast is based on currently available data, and subject to changes in the market demand, exchange rates and other economic variables.
Public Relations Group,
General Affairs Dept., Yanmar Co., Ltd.