OSAKA, Japan - Shimano Group managed to increase its net income by 217.2% to 6,998 million yen (59.7 million euro) during the first quarter of the fiscal year 2012, say the company’s financial results. Net sales rose 22.7% to 62,472 million yen (532.9 million euro) while ordinary income increased 56.9% to 10,101 million yen (86.2 million euro).
Shimano’s financial report mentions for the results of it bicycle components segment in the major markets of Europe and the United States that retail sales remain robust since January thanks to a generally mild winter except for a cold period from late January to early February. In the US a general lack of extreme winter weather helped to keep retail sales at a brisk level. In contract Japan experienced a harsher winter than usual, resulting in sluggish retail sales.
Shimano reports that distributor inventories in Europe and the US remained at appropriate levels. In these market conditions, demand for Shimano products rose. Positive factors included the anticipation of further growth in demand for sports bicycles in China and robust retail sales in Europe and the US. Sales for the first quarter fulfilled the forecasted. As a result sales in this segment increased by 22.1% from the same period in 2011 to 49,808 million yen (424.9 million euro) and operating income increase 40.9 % to 12,122 million yen (103.4 million euro).
For Shimano the threat posed by the sovereign debt crisis in Europe diminished, albeit temporarily, but the outlook for overseas economies remains unclear. The company has revised the forecast of its consolidated financial performance announced on February 8 2012 for the first half of the fiscal year ending December 31, 2012 and for the full year.
The revised forecast for the full year is as follows:
- Net sales 233,000 million yen (1,987 million euro) (+1.3%).
- Ordinary income 36,000 million yen (307 million euro) (+2.9%).
- Net income 25,000 million yen (213 million euro) (+4.2%).
* Please note that Shimano Inc. has announced figures in JPY currency only. EUR equivalent amount is calculated by up-to-date exchange rate for the reference, the company assumes no responsibility for this translation or for direct, indirect or any other forms of damages arising from the translation.