Yamaha has released its second quarter results for the period ending March 31st 2017, showing the impact of exchange rate fluctuations on sales.
Although first half sales declined year-on-year, total group operating income increased for the fifth consecutive year. 1H operating income amounted to ¥24.6bn against ¥21.bn in the same period 2016, with musical instruments and audio equipment both achieving record levels of income. The decline in sales was chiefly due to the impact of exchange rates (-¥22.4bn) and the transfer of music school operations (-¥4.2bn).
First half sales of musical instruments decreased from ¥110bn in the same period of the previous year, to ¥102.2bn, but operating income rose from ¥16.8bn to ¥18.8bn.
Operating income increased due to higher actual sales, sales price adjustments, cost reductions, and control of SG&A expenses including the decrease in amortization of goodwill
Music net sales in Europe are expected to realise ¥46.6bn in the full financial year 2017 against ¥50.7bn in 2016.
Q2 European sales were down from ¥13.8bn in 2016 to ¥11.4bn in Q2 2017. First half net sales were down from ¥24.5bn to ¥23.3bn. The second half of 2017 is forecasted to generate net European sales of ¥23.3bn against ¥26.3bn in the previous second half period.
