YANMAR Announces 2014 Interim Business Results Forecast
December 1, 2014
Yanmar Co., Ltd.
YANMAR announced its 2014 interim business results (April 1, 2014-March 31, 2015) forecast at the Osaka Head Office on November 27, 2014, as follows:
YANMAR Group 1st Semester Business Results:
In the first semester (April-September 2014), the United States’ recovery continued and Europe’s economy experienced an upward swing. Contrastively, the financial situation in Asia was bleak with Indonesia’s tight political controls and the political turmoil in Thailand stilting economic growth. Given China’s worsening financial problems and rising geopolitical instability in the Middle East, the world economy remains highly unstable and far from a robust recovery.
In Japan, the economy held strong due to a buying frenzy among consumers before the rise in consumption tax, but drops in Japanese domestic demand post-tax increase affected the pace of recovery. This was somewhat offset by increases in investments and public demand. Exports were stunted by economic stagnation in emerging Asian markets, but mild signs of recovery were apparent as a result of rising demand in the American market and a continued depreciation of the Japanese yen.
In order to sustain ongoing growth, in the first semester of 2014, YANMAR’s undertakings were focused on the following aspects:
1. Reinforce operations in current fields and expand into new domains
① Improve collaboration between Group entities in the domains and regions we operate in
② Start full-scale operations in new business domains
2. Promote management that best fit Group needs
① Enhance SCM to shorten lead time
② Employ a global business management system
3. Deliver products and services that continue to exceed customer expectations
① Commercialize YANMAR Premium Brand products
② Put a business model in effect that utilizes ICT
4. Continue to actively contribute to the development of local communities worldwide
① Introduce a business model on environmental sustainability
② Conduct environmentally sustainable activities via YANMAR businesses
These undertakings led to the achievement of the following consolidated results: Net Sales of 317.4 billion, 1.6% more than in FY2013; Ordinary Profit of 20.2 billion, 20% less than in FY2013; Net Sales Ratio of 6.4% and Net Profit of 13.2 billion, 23.4% less than in FY2013.
Sales outside Japan rose by 11.4% to a total of 144.8 billion, and an overseas-derived sales weight of 45.6%.
Note: "FY2013" indicates here the first semester of FY2013, April-September 2013.
YANMAR Group FY2014 Business Results Forecast:
For the end of fiscal year 2014, the company expects consolidated Net Sales of 680 billion, 29.2 billion more than in FY2013; Operating Profit of 39 billion, 4.5 billion less than in FY2013 and Ordinary Profit of 40 billion, 4.8 billion less than in FY2013.
Note: The above forecast is based on currently available data, and subject to changes in the market demand, exchange rates and other economic variables.
YANMAR Holdings Co., Ltd.