Japanese equipment and engine manufacturer Yanmar posted net sales of JY655 billion (about U.S. $5.34 billion) in its fiscal year 2014, an increase of 0.7 percent compared to fiscal 2013. However, ordinary profit dropped 11.7 percent, the company said. Net sales outside Japan hiked 16 percent to account for 44.1 percent of group sales.
The European economy showed continuing recovery, along with an increasingly positive outlook in the Americas. However, economic growth in Southeast Asia slowed in general with China experiencing a decrease in GDP growth.
In Japan, the aftermath from increased consumer spending and capital investments before the consumption tax hike in April 2014 led to a slump in growth in the first part of the year, partially offset by a boost in exports from a weak yen and global economies regaining ground.
The company said that threats to the global economy included rising interest rates in the United States and geopolitical instability in Ukraine and the Middle East.
Yanmar intensified existing operations and expansion to new areas, creating new business opportunities by strengthening collaboration between Yanmar’s business units in different locations and markets. The company reduced lead time through supply-chain management, it said, introducing a global business management system.
Yanmar expects to increase group net sales 11.5 percent in fiscal 2015 to JY730 billion.
