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.