The three-year plan is an extension of Yamaha‘s
plan for 2010-2012 which targets a “V-shaped recovery”. The term is
used to describe an sharp downturn in the economy followed by a strong
recovery back to previous levels.
The previous plan called for the
restructuring of its domestic and foreign manufacturing facilities and
the loss of 1000 jobs to reduce costs by 60 billion yen from 2010-2012.
Yamaha is currently ahead of that target, forecasting a savings of 75
billion yen (US$892 million) over those three years. Yamaha however has
fallen short on the previous goals for 1.4 trillion yen in net sales
and 70 billion yen in operating income for 2012. Yamaha now forecasts
year-end net sales of 1.2 trillion yen and an operating income of 28
billion yen. Production is also expected to be down for 2012 to 6.7
million units compared to 7.4 million units produced in 2011. Continue Reading »
By: Dennis Chung