Kawasaki Reports 2012-2013 Results

Kawasaki Heavy Industries reported a 7.1% increase in net sales from its Motorcycle and Engine business for the fiscal year ended March 31, 2013. The bump in sales resulted in the division’s first year-end profit since the 2007-2008 fiscal year.
The Motorcycle and Engine division, which includes Kawasaki‘s ATVs, UTVs, personal watercraft and general purpose engines, generated 251.8 billion yen (US$2.462 billion) in sales revenue, up from 235.2 billion yen reported the previous fiscal year.
The sales increase contributed to an operating income of 2.3 billion yen (US$22.5 million) for the 2012-2013 fiscal year. The last time the Motorcycle and Engine division made a profit, it was known as the Consumer Products and Machinery division (including industrial robots), reporting an operating income of 19.7 billion yen the year ended March 31, 2008.The division then turned in year after year of operating losses, bottoming out with an operating loss of 31.6 billion yen for the 2009-2010 fiscal year. The following year, Kawasaki reorganized the Consumer Products and Machinery division, excluding the money-losing industrial robots business, but still reported a loss of 5.0 billion. That loss was reduced to 3.0 billion last year.
Kawasaki attributes the turnaround to an increase in sales in the United States and emerging market such as Indonesia where Kawasaki opened a new factory last September. The Motorcycle and Engine division sold 544,000 units during the fiscal year, up from 501,000 sold the previous year. North American consumers accounted for sales of 74,000 motorcycles, up from 69,000 motorcycles sold the previous year.Contributing to the growth was the introduction of new models including the Ninja 300, the 636cc Ninja ZX-6R and the Z800.
Overall, Kawasaki Heavy Industries reported a net profit of 30.864 billion yen (US$301.5 million) on the year, up from the profit of 23.3 billion yen reported a year earlier.
Looking ahead, Kawasaki forecasts continued growth in its Motorcycle and Engine business thanks almost entirely to expansion in Asia. The company predicts an increase of sales to 620,000 units worldwide, though North American motorcycle sales are expected to drop back to 68,000 units. Kawasaki also expects the division to generate 290.0 billion yen in net sales and a profit of 10.0 billion yen.
[Source: Kawasaki]