Yamaha issues gloomy outlook after profits tumble

0 Comments | AFP, July, 2008

TOKYO (AFP) — Japan's Yamaha Motor Co. issued a profit warning Thursday after weak demand, rising raw material costs and a stronger yen slashed its first-half net profits by almost half.

Yamaha has enjoyed record high sales in recent years but the global economic slowdown is now curbing demand for its motorcycles and other products.

Net earnings slid 47.9 percent to 25.85 billion yen (239 million dollars) in the six months to June from a year earlier, the company said.

Operating profit dropped 35.3 percent to 46.70 billion yen as revenue declined 6.6 percent to 869.06 billion yen, partly due to a weak dollar.

The company was hit by sluggish demand for motorcycles in Japan, Europe as well as the United States.

Sales of all-terrain vehicles and...