Aug. 4 (Bloomberg) -- Yamaha Motor Co., the world’s second- largest motorcycle maker, fell the most in nine months after the company quadrupled its forecast to a full-year loss of 182 billion yen ($1.9 billion).

The company dropped 9.9 percent, or 120 yen, to 1,096 yen at the close on the Tokyo Stock Exchange. Yamaha, based in Iwata City, Japan, had previously forecast a net loss of 42 billion yen. It posted a loss of 74.7 billion yen in the first half.

The motorcycle maker cut its sales forecast by 12 percent as rising unemployment and falling wages reduces demand for Royal Star cruising bikes. Yamaha plans to close three factories in Japan over the next three years. The company cut its forecast for motorcycle sales in North America this year by 35 percent and lowered its prediction for European sales by 8 percent.

“Consumers are fearful and not spending on motorcycles in the U.S. and Europe,” said Yuuki Sakurai, chief executive officer of Fukoku Capital Management Inc. in Tokyo. “Even if the economy recovers, it won’t be as same level as two years ago.”

Yamaha Motor gets about 41 percent of sales from Europe and North America. A stronger yen will reduce operating profit by 76.6 billion yen, the company said.

To contact the reporter on this story: Kiyori Ueno in Tokyo at kueno2@bloomberg.net

Last Updated: August 4, 2009 02:53 EDT