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Yamaha cuts forecast 23%

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From Bloomberg News

Yamaha Motor Co., the world’s second-largest motorcycle maker, cut its fiscal full-year net income forecast 23% because of falling demand in the U.S. for large motorcycles.

The Japanese company cut its forecast to 45 billion yen ($416.8 million) from an earlier prediction of 59 billion yen, it said in a statement today. Sales will be 1.72 trillion yen, 6% lower than the initial forecast.

Yamaha expects its first decline in operating profit in eight years as consumers in the U.S. cut spending on luxury items, including boats and large motorcycles. Sales are also falling in Europe and Japan.

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“Yamaha is taking a severe hit from the economic downturn in the U.S.,” said Koji Endo, a senior analyst at Credit Suisse Group in Tokyo. “Demand for big touring motorcycles and boats is drying up.”

Shares fell 2.8% at midday on the Tokyo Stock Exchange before the announcement.

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