Yamaha's Q1 Audio Sales Fall In North America

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Shizuoka, Japan - Worldwide sales and operating income in Yamaha's AV/IT segment, which includes audio and commercial karaoke equipment, rose in the company's fiscal first quarter despite the impact of Japan's earthquake.

But Yamaha reported that audio sales in North America and Europe declined by an unspecified amount.

Yamaha attributed its worldwide AV/IT gains to "major gains" in sales of commercial online karaoke equipment. The company also reported "robust" audio sales in China and other emerging markets even as North American and European sales declined.

The company also raised its second-quarter and full-year forecasts for consolidated sales and net income, citing better-than-anticipated first-quarter performance and less of an impact than expected from the earthquake.

For its 2012 fiscal first quarter ending June 30, worldwide AV/IT sales grew 2.8 percent to 12,379 million yen ($161.5 million), and operating income rose 62 percent to 557 million yen ($7.27 million). AV/IT accounted for 14 percent of consolidated sales of 87,928 million yen ($1.15 billion). Besides home audio and commercial karaoke equipment, AV/IT sales include business routers.

Yamaha's consolidated sales, which include musical instruments and sound generators for cellphones and amusement equipment, fell 3.3 percent to 87,928 million yen ($1.15 billion), with consolidated operating income falling 39.8 percent to 3,103 million yen ($40.5 million) and net income falling 77 percent to 504 million yen ($6.58 million). Musical instruments accounted for 76 percent of sales in the quarter.

In North America, consolidated sales fell 16.2 percent to 11,124 million yen ($145.2 million).

Worldwide consolidated operating income fell in the quarter, Yamaha said, because of foreign-currency fluctuations and declining output and shipments "caused by difficulties in procuring parts and cutbacks in production among corporate clients, both of which were caused by the earthquake."

For the full year, the company's upwardly revised forecasts call for sales of 378,000 million yen ($4.94 billion), up 2.2 percent from the previous forecast; operating income of 12,500 million yen ($163.3 million), up 25 percent from the previous forecast; and net income of 6,500 million yen ($84.9 million), up 30 percent from the previous forecast.


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