Investors at the Tokyo Stock Exchange were not happy with Yamaha Motor this morning, as the Japanese motorcycle manufacturer reported its 2010 earnings and 2011 forecast, and promptly saw its stock drop 10%. Despite managing to turnaround its 2010 income from the ¥216.1 billion ($2.5 billion) loss it took in 2009 to a profit of ¥18.3 billion ($219 million), Yamaha only expects to improve on these gains by just over 9% in 2011.
BMW isn’t the only company weathering the storm in the motorcycle industry, as Ducati North America has released some of its own numbers from 2010. At the top of the highlight list is Ducati North America’s 35% increase in December 2010 sales over December 2009’s sales figures.
Also bucking the trend was DNA’s growth in Q3 & Q4 of 2010, where the company sold 8% & 9% more motorcycles respectively than in the same quarters in 2009. Compare that to the North American motorcycle industry averages, which saw a 15% decrease in Q3 and 14% decrease in Q4 last year.
BMW Motorrad continues to shine in this down economy, as the company has reported a 7.8% worldwide sales increase compared to November of last year. For the rest of 2010, BMW’s sales have increased every month compared to last year’s figures, from January to November. In the same time period, BMW Motorrad sold 94,283 units internationally, up 15% from the 81,946 units sold during the same duration last year.
While it isn’t saying much that sales are improving over the devastating numbers from 2009, the motorcycle industry is still considered to be down by roughly 11%, which makes BMW still an outlier from the industry norm.
The Federal Reserve made disclosures today that it quietly made short-term loans to major institutions and Fortune 500 companies during the 2008-2009 economic meltdown. Among one of the companies listed as receiving a 3-month Commercial Paper Funding Facility (CPFF) promissory note from the Fed is Harley-Davidson, which received 33 loans totaling $2.3 billion in aid to meet operational needs. Other companies who received economic help include GE (12 loans totaling $16 billion), Verizon (two loans totaling $1.5 billion). Commercial paper was also purchased from McDonalds, UBS ($74.5 billion), AIG ($60.2 billion) and Dexia ($53.5 billion).
The concept of “buying paper” has been mislabeled by other sources as a bailout from the Fed, despite the fact that loans made by the Federal Reserve differ from the bailouts we saw for the auto and banking industries both by being for a short-term duration, and because they only replaced other short-term cash flow loans that disappeared during the financial crisis (that’s what you get for getting financial news from a motorcycle site that spells Warren Buffett’s name like a meal from which guests server their own food, and then over reports his lending amount to Harley-Davidson by over three-fold).
If anything this news shows the great lengths the Federal Reserve had to take in order to keep the credit market open for major American businesses and institutions. It should be noted that because of the Fed’s efforts these companies were able to receive the cash flow and short-term loans to stay afloat during the crisis, and now that the CPFF program is over, the Federal Reserve reports that it not only was paid back in-full by every borrower, but also made money on the interest of all the loans ($849 million in total).
Yamaha has quietly released information on the 2011 Yamaha YZF-R1 on its website, and as expected there are few changes for the new year. With plenty of R1’s sitting in the factory, Yamaha took a slugging during the recession, and is still unloading leftover inventory onto dealers. To help sell those 2011 Yamaha R1’s though, the tuning fork brand has thrown some new paint on the faster red ones…and by new paint we mean skulls with wisps of fire and brimstone.
According to the NHTSA, motorcycle deaths in the United States dropped by 16% in 2009 compared to the number of deaths in 2008. With 4,462 deaths in 2009 and 5,312 deaths in 2008, this makes for the first time motorcycle death tolls have dropped in the past decade; however federal officials are reluctant to call this a victory in rider safety.
“While we are pleased that the number of motorcycling fatalities dropped dramatically in 2009, a one-year drop isn’t a trend. We need to determine why, and ensure that the decline continues,” said Ed Moreland, AMA Senior Vice President for Government Relations.
BMW Motorrad is reporting that worldwide motorcycle sales were up 21% for the first five months of 2010, compared to 2009’s numbers. Sales were up 19.3% for the month of May alone, with 12,139 units sold, making for 45,431 units sold thus far in 2010. The newly revised BMW R1200GS/Adventure models account for 3,705 of the motorcycles sold in May, which is up almost 34% from last year.
While the GS comprises almost a third of BMW’s total sales in May, BMW reported that the F and K series motorcycles also showed strong demand in the month as well. Also making a strong showing is the all new S1000RR superbike, which sold 1,345 units in last month for a total of 5,236 units sold this year so far.
The motorcycle industry continues to thaw after its deep freeze during the recession, and a part of that warming effect comes from Triumph Motorcycles, who reported a 9% increase in unit sales in the United States for April 2010 when compared to April 2009. “It’s feels good to see consistent growth, and we’re optimistic about the future” said Mark Kennedy, President and CEO of Triumph Motorcycles North America. Continuing, Kennedy said, “…the U.S. economy is showing signs that indicate we should have a good year.” Part of the growth Kennedy is referencing to is of course having more customers purchase models from the existing model line-up, but Triumph also has its eye on new segments as well. More on that after the jump.
The Piaggio Group is reporting an 11.2% increase in its first quarter 2010 sales across its motorcycle and scooter subsidiaries compared to last year’s numbers. The group netted €2.9 million for Q1, which is noticable increase from its €4.7 million loss in Q1 of 2009. For motorcycle sales alone, the company saw a 12.4% increase unit sales, with the European market leading the charge.
While the US motorcycle market posted a 36% decline last month compared to a year ago, BMW was busy posting up some impressive numbers. The German company is reporting its February 2010 sales numbers are up 52% compared to February 2009. The main reason for the surge: the 2010 BMW S1000RR superbike, which would make BMW’s gamble of competing head-to-head with the Japanese Four a venerable victory. More after the jump.