Kawasaki 2023 Annual Report Analysis: Net profit of the Powersports Division is $327 million.
Net profit of the Powersports Division is $327 million.
by The Crusher
Saturday, August 10, 2024
Note for US readers:
Kawasaki Corporate had total sales in Fiscal 2023 of $11.7 Billion Dollars
The Powersports Division had 34.2% of that total, representing $4.02 billion in sales.
Net profit of the Powersports Division is $327 million.
Again, if Kawasaki spent $15 million in Superbike or MotoGP racing, $15 million represents .001% of total corporate sales, and .046% of total profit.
Kawasaki recently released its Fiscal Year 2023 results. This time period is from April 1, 2023 to March 31, 2024. Most Japanese-based corporations use financial reporting periods different from those used in the United States. This explains why the fiscal year 2023 ends on March 31 for Kawasaki, vs Oct 31 or Dec 31 for most U.S. based corporations.
Let’s dig into the report and see what stands out from a motorcycle enthusiast standpoint.
As in last year’s report (Fiscal 2022), the Powersports and Engine Division once again leads all five Corporate divisions in revenue (sales), with 34.2% of total company revenue. Powersports includes Motorcycles, Engines, Four Wheelers, and Personal Watercraft (jet skis).
This is significant for a company that also produces ships, submarines, aircraft, helicopters, subway cars, commercial aircraft parts, and energy plants.
In addition to leading all five Corporate Divisions in producing sales, the Powersports Division also led the Kawasaki Corporation in generating profit. Total Corporate Profit of all five divisions in FY 2023 is 46.2 Billion Yen, with the Powersports Division producing 48.0 Billion Yen in profit. Two other divisions had losses for the year (Aerospace Systems, Precision Machinery and Robot).
Said differently, the Powersports Division produced more profit in fiscal 2023 for Kawasaki than the other 4 corporate divisions combined!
Kawasaki is counting on the Powersports Division to lead the way in revenue production again this year, estimating sales of 720 Billion yen vs 592 billion yen last year. The next nearest division is estimated to be Aerospace with 580 Billion yen in sales.
Total company profit for fiscal 2024 is estimated to be 130 billion yen, with the Powersports Division expected to earn almost half of that at 68 billion yen. No other corporate division comes close to that level of profitability!
Once again, the Powersports division is being counted on to deliver outsized profits for 2024.
Motorcycles, four wheelers, jet skis, and engines are clearly a hugely profitable part of this vast corporation.
This chart shows that the bulk of the increased sales expected of the Powersports Division by March 31, 2025 is expected to come from a huge increase in sales of Utility Vehicles, ATVs, and Personal Watercrafts. Sales for these four-wheeled and watercraft machines earned 180 billion yen in 2023, and are expected to produce 285 billion yen of sales in 2024.
By comparison, motorcycle sales are expected to be relatively flat year over year.
The smaller chart at the bottom right above shows where motorcycles, four-wheeler, and PWC units are sold, along with the number of units produced.
In 2023, Kawasaki sold 211,000 motorcycles to Developed countries, and another 233,000 motorcycles in Emerging countries, for a combined production of 444,000 motorcycles. For 2024, Kawasaki estimates it will produce 520,000 motorcycles.
The Four Wheeler and PWC production are lumped together, with 88,000 units built in 2023. But check out 2024 estimated production….140,000 units, representing more than a 50% increase in units sold year over year! The bulk of this will come from Four Wheeler sales. Kawasaki just opened a new plant in April 2024 located in Mexico dedicated exclusively to Four Wheeler Production.
And in case you are wondering how many employees it takes to staff all five Corporate divisions and produce all the revenue and profits, the chart above shows us. Kawasaki estimates it will hire an additional 2231 employees in 2024 (no doubt many for the Mexico four wheeler plant). This will bring total employment from 39,689 employees in 2023 to 41,920 employees in 2024.
Stepping back from all the facts and figures discussed above, it is fascinating to think about this: Kawasaki started manufacturing motorcycles in the 1960s to utilize excess manufacturing capacity, and to make a bigger name for itself in the public consciousness. After all, most of us don’t routinely come in contact with the submarines, ships, rockets, bridges, power plants, rail cars, and airplane parts that Kawasaki manufactures.
Also, Kawasaki was the first Japanese vehicle manufacturer to establish a manufacturing plant in the United States (Lincoln Nebraska in the 1970s).
Kawasaki’s lead and success building in the U.S. helped Honda have the confidence to build their own first ever U.S. manufacturing plant in Marysville Ohio in 1979.
Over the course of the last 60 years, motorcycles, four wheelers, and jet skis that consumers can touch, test ride and purchase have consistently become Kawasaki’s largest revenue generator and biggest profit maker.
Kawasaki Corporate had total sales in Fiscal 2023 of $11.7 Billion Dollars
The Powersports Division had 34.2% of that total, representing $4.02 billion in sales.
Net profit of the Powersports Division is $327 million.
Again, if Kawasaki spent $15 million in Superbike or MotoGP racing, $15 million represents .001% of total corporate sales, and .046% of total profit.
Kawasaki recently released its Fiscal Year 2023 results. This time period is from April 1, 2023 to March 31, 2024. Most Japanese-based corporations use financial reporting periods different from those used in the United States. This explains why the fiscal year 2023 ends on March 31 for Kawasaki, vs Oct 31 or Dec 31 for most U.S. based corporations.
Let’s dig into the report and see what stands out from a motorcycle enthusiast standpoint.
Kawasaki Has Five Core Businesses
As in last year’s report (Fiscal 2022), the Powersports and Engine Division once again leads all five Corporate divisions in revenue (sales), with 34.2% of total company revenue. Powersports includes Motorcycles, Engines, Four Wheelers, and Personal Watercraft (jet skis).
This is significant for a company that also produces ships, submarines, aircraft, helicopters, subway cars, commercial aircraft parts, and energy plants.
Profit by Division
In addition to leading all five Corporate Divisions in producing sales, the Powersports Division also led the Kawasaki Corporation in generating profit. Total Corporate Profit of all five divisions in FY 2023 is 46.2 Billion Yen, with the Powersports Division producing 48.0 Billion Yen in profit. Two other divisions had losses for the year (Aerospace Systems, Precision Machinery and Robot).
Said differently, the Powersports Division produced more profit in fiscal 2023 for Kawasaki than the other 4 corporate divisions combined!
Corporate Revenue & Profit Forecast for Fiscal 2024
(April 1, 2024-March 31, 2025)Kawasaki is counting on the Powersports Division to lead the way in revenue production again this year, estimating sales of 720 Billion yen vs 592 billion yen last year. The next nearest division is estimated to be Aerospace with 580 Billion yen in sales.
Total company profit for fiscal 2024 is estimated to be 130 billion yen, with the Powersports Division expected to earn almost half of that at 68 billion yen. No other corporate division comes close to that level of profitability!
Once again, the Powersports division is being counted on to deliver outsized profits for 2024.
Motorcycles, four wheelers, jet skis, and engines are clearly a hugely profitable part of this vast corporation.
Powersport Production Forecast for Fiscal 2024
(April 1, 2024-March 31, 2025)This chart shows that the bulk of the increased sales expected of the Powersports Division by March 31, 2025 is expected to come from a huge increase in sales of Utility Vehicles, ATVs, and Personal Watercrafts. Sales for these four-wheeled and watercraft machines earned 180 billion yen in 2023, and are expected to produce 285 billion yen of sales in 2024.
By comparison, motorcycle sales are expected to be relatively flat year over year.
The smaller chart at the bottom right above shows where motorcycles, four-wheeler, and PWC units are sold, along with the number of units produced.
In 2023, Kawasaki sold 211,000 motorcycles to Developed countries, and another 233,000 motorcycles in Emerging countries, for a combined production of 444,000 motorcycles. For 2024, Kawasaki estimates it will produce 520,000 motorcycles.
The Four Wheeler and PWC production are lumped together, with 88,000 units built in 2023. But check out 2024 estimated production….140,000 units, representing more than a 50% increase in units sold year over year! The bulk of this will come from Four Wheeler sales. Kawasaki just opened a new plant in April 2024 located in Mexico dedicated exclusively to Four Wheeler Production.
Kawasaki Number of Employees
And in case you are wondering how many employees it takes to staff all five Corporate divisions and produce all the revenue and profits, the chart above shows us. Kawasaki estimates it will hire an additional 2231 employees in 2024 (no doubt many for the Mexico four wheeler plant). This will bring total employment from 39,689 employees in 2023 to 41,920 employees in 2024.
Stepping back from all the facts and figures discussed above, it is fascinating to think about this: Kawasaki started manufacturing motorcycles in the 1960s to utilize excess manufacturing capacity, and to make a bigger name for itself in the public consciousness. After all, most of us don’t routinely come in contact with the submarines, ships, rockets, bridges, power plants, rail cars, and airplane parts that Kawasaki manufactures.
Also, Kawasaki was the first Japanese vehicle manufacturer to establish a manufacturing plant in the United States (Lincoln Nebraska in the 1970s).
Kawasaki’s lead and success building in the U.S. helped Honda have the confidence to build their own first ever U.S. manufacturing plant in Marysville Ohio in 1979.
Over the course of the last 60 years, motorcycles, four wheelers, and jet skis that consumers can touch, test ride and purchase have consistently become Kawasaki’s largest revenue generator and biggest profit maker.
— ends —
