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US Market Puts Shimano’s Q3 Results under Pressure

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Shimano reports sluggish sales of mid-range and high-end bicycles in North America since this spring. The European market however shows a completely different picture according to the leading bike component maker. Sales in mid and high-end segments in Europe

US Market Puts Shimano’s Q3 Results under Pressure

OSAKA, Japan – Shimano reports sluggish sales of mid-range and high-end bicycles in North America since this spring. The European market however shows a completely different picture according to the leading bike component maker.

Sales in mid and high-end segments in Europe have been steady during the first nine months of the year although customers took a cautious approach in placing new orders, stated Shimano this week at the presentation of its financial January – September 2009 results.

In consequence of the slow down in sales on the bicycle market Shimano’s shipments of bicycle components in the first nine months of fiscal year 2009 were lower than the figure for the same period of the previous year. This decline was already forecasted last summer when Shimano reported its outlook for 2009.

In the period January – September 2009 net sales of bicycle components decreased by 23% to JPY 102,866 million (€ 701 million) related to JPY 133,498 million (€ 910 million) during the period January – September 2008. In the same period the operating income plunged by 47% to JPY 13,367 million (€ 91 million).

Forecast 2009

In its forecast for the rest of the year and the period ahead Shimano remains very careful. The Japanese component maker stated that the real economy remains in dull in most countries, despite an upturn in the international financial situation. Consumer confidence is also expected to stay weak for a considerable time due to the deterioration of employment.

Shimano is well aware of the fact that the bicycle business is not particularly upbeat for sales although inventory adjustment in the market is progressing. In view of these conditions Shimano revised its forecast of consolidated business results for the fiscal year 2009. The latest forecast is as follows: net sales of JPY 183,000 million (€ 1,247 million), operating income of JPY 20,000 million (€ 136 million) and a net income of JPY 11,200 million (€ 76 million).

* 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.

 

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