Shimano Signals Recovery and Robust Market Demand
In its recently published 2009 financial report Shimano notes that there are: “Clear signs of recovery mainly in the mid-range and high-end markets.” Moreover, the worlds biggest in bicycle components speaks of a ‘robust market demand’ and forecasts for 2010 a net sales growth in the bicycle division of
OSAKA, Japan – In its recently published 2009 financial report Shimano notes that there are: “Clear signs of recovery mainly in the mid-range and high-end markets.” Moreover, the worlds biggest in bicycle components speaks of a ‘robust market demand’ and forecasts for 2010 a net sales growth in the bicycle division of 11%!
Shimano says in its financial report: “There are indications on a growing number of bicycle users worldwide, reflecting the increasing interest in health and environmental issues as well as a robust market demand for parts for repair and upgrade.”
Despite the recovery signals, Shimano’s shipments in 2009 were lower than in the previous year. The net sales in Shimano’s bicycle division decreased by 22.2% to € 1,083 million (JPY 144,688 million) and the operating income fell by 43.4% to € 148.8 million (JPY 19,877 million).
As a global player the economic recession has put a lot pressure on Shimano’s financial results over 2009. They have even deteriorated related to 2008. Both the cycling component as well as the fishing tackle business operated in a very challenging environment. They suffered greatly from the decline in consumer confidence as well as inventory adjustment in the market.
As a result Shimano reported a net sales decrease by 20.6% from previous year to € 1,397 million (JPY 186,686 million). The consolidated ordinary income plunged by 45.1% to € 150 million (JPY 20,135 million) and the net income plummeted 62% to € 71.5 million (JPY 9,553 million). Shimano’s sale of bicycle components were sluggish, regardless the price ranges.
To face the uncertainly on the economic recovery, especially on its home market Japan, Shimano will press ahead with the creation of captivating new products while striving to lead the creation of a new cycling culture. Next to that Shimano aims to achieve early recovery of its financial performance by improving the profitability through streamlining the production and logistics. For 2010 Shimano forecasts a net sales growth in the bicycle division of 11%.
* 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.