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Yamaha First Half Profits Down

11/01/2011 12:59:18 PM Eastern

Shizuoka,
Japan - Yamaha's consolidated sales, operating income and net income fell
worldwide during the company's fiscal first half, in large part because of currency
fluctuations that reduced the yen value of sales made in other countries, the
company said.

First-half
bright spots included sales in the company's two largest segments, A/V-IT and
musical instrument. Sales in both segments "remained relatively firm and showed
increases year on year" after excluding the impact of the changing
dollar-to-yen conversion rate, the company said.

Yamaha's
A/V-IT segment includes home audio, commercial karaoke equipment and business
routers. The segment accounted for 14.2 percent of company sales in the half
and 29.2 percent of operating profit, which grew in the half as company-wide
operating and net income fell. The musical instruments segment includes musical
instruments and pro and
commercial audio.

On
a consolidated basis including musical instruments, ICs, A/V-IT products and
other products, company-wide net sales slipped 4.2 percent to 176.6 billion yen
($2.25 billion), operating income fell 32 percent to 6.3 billion yen, ($800
million), and net income fell 44.2 percent to 2.8 billion yen ($26 million).

Though
Yamaha's consolidated net sales fell by 7.7 billion yen, foreign currency
fluctuations accounted for 4.7 billion yen of that decline, the company said.
Consolidated operating income fell by 3 billion yen, with currency fluctuations
accounting for half of that decline. Operating income also fell because of "the
effects of declines in output and shipments that were caused by difficulties in
procuring parts and cutbacks in production among corporate clients, both of
which were caused by the earthquake," the company said.

Although
Yamaha's consolidated operating income was down 32 percent in the half to 6.3
billion yen ($800 million), A/V-IT operating income rose 194.6 percent to 1.84
billion yen ($20 million). The segment's income gain came despite a 1.4 percent
decline in A/V-IT sales to 25 billion yen ($320 million).

Musical
instrument sales, which accounted for 75 percent of sales, fell 2 percent to
132.4 billion yen in the half, and the segment's operating income fell 72
percent to 4.6 billion yen.

North
American audio sales (U.S. and Canada combined) declined by an unspecified
amount after dollars were converted to yen.

"Part of
the North American decline can be attributed to exchange rate and part of it to
the change in April 2011 of architectural speakers moving from the A/V-IT group
to the pro audio group," said Yamaha Electronics Corp. president Tom Sumner.
"Looking at the U.S market only for Yamaha's second quarter (July through September),
Yamaha's sell-through share in A/V receivers grew slightly less than 1 percent
from the previous year while the market as a whole was up high single digits," Sumner
said. Yamaha's market share in the overall home theater' business (AVRs, HTiBs
and soundbars) gained about 0.5 percent share with the market as a whole up in
mid-single digits, he added.

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