Yamaha Jumps After CEO Sees Sales Recovery in Indonesia
Yamaha Motor Co. (7272), Japan’s second- largest motorcycle maker, surged the most in more than three years in Tokyo trading after the chief executive officer said sales in Indonesia will most likely exceed its goal.
Yamaha climbed 11 percent to close at 727 yen in Tokyo trading, the biggest advance since Feb. 25, 2009. The Iwata City, Japan-based company expects sales in Indonesia to “slightly outperform” its target of 2.4 million units in the year to Dec. 31, President and CEO Hiroyuki Yanagi said today.
The company has performed “better than expected” in Indonesia in the three months through August, Yanagi said in Tokyo. Yamaha, which sold 42 percent of its total motorcycles in the first half in Indonesia, is counting on the Southeast Asian nation and other emerging markets to drive growth. The Japanese company’s sales in Indonesia fell 21 percent in the first half from a year earlier.
“It looks like business in Indonesia is set to recover, and Yamaha seems to have overcome its concerns,” said Koichi Sugimoto, a Tokyo-based auto analyst at BNP Paribas SA. “Yamaha’s cost cutting measures seem to be taking effect, and we can expect a rebound in the next fiscal year.”
Industrywide demand for motorcycles in Indonesia declined 5.5 percent to 3.64 million units in the first half, according to Yamaha. Yamaha’s motorcycle sales in Indonesia in the period declined to 1.31 million units from 1.65 million units a year earlier, the company said.
Yamaha is targeting 28 billion yen ($357 million) in operating profit this year, 38 percent lower than an earlier forecast, as net income in the first half fell 50 percent. It also expects sales to drop to 1.2 trillion yen, 14 percent lower than forecast earlier.
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