FOLLOWING worldwide speculation of an imminent financial crisis – Yamaha is now predicting a drop in operating profits, the first time the factory has faced such a monetary move in eight years.
Blame for the prediction lies in the stronger yen against the dollar and falling demand for Yamaha motorcycles in the States.
Over the past 12 months, USA market analysts claim that firm’s shares values have dropped the most in the last 26 year period.
Yamaha is reported to have said that a stronger domestic currency will cut operating profit by a huge 55.5 billion yen this year.
"This year will be tough for Yamaha,'' said Kazuhito Sasaki, a senior analyst at Tokai Tokyo Research Center Co. in Tokyo. "Earnings will be hurt by lower sales in the U.S. because of the economic slowdown.''
