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Investing.com -- Yamaha Motor Co., Ltd. (TYO:7272) lowered forecasts for the fiscal year ending December 2024 today. The motorcycle and marine engine manufacturer revised its operating profit (OP) forecast down to ¥180 billion from the previously estimated ¥235 billion.
The downward revision, announced after the market closed on February 3, is attributed to a combination of write-downs in special-purpose vehicles (SPVs) and recreational vehicles (RVs), reduced sales in the marine business, and declining motorcycle sales in Brazil and other markets. The extent to which the guidance cuts include restructuring-style one-offs has not been fully clarified by Yamaha Motor.
Analysts at Citi have weighed in on the revision, stating: "if we estimate the impact on incremental profit from the ¥50bn downward revision to the sales estimate, we calculate that of the ¥55bn downward revision to the OP estimate, around ¥40bn is owing to restructuring. Some of the restructuring looks set to contribute to a turnaround this FY but we get a negative impression from the way that uncertainties have emerged in the motorcycle business as well as in the marine business."
Investors reacted negatively to the news, as the cut in forecasts suggests a challenging outlook for the company. s.
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