Shimano Expects Stable Market Conditions for 2014
TOKYO, Japan – In its financial report on 2013 which includes an outlook on 2014 Shimano says to expect stable market conditions in Europe and the United States for 2014. During last year the component maker saw it sales in bicycle components grow by about 10%.
Unsettled weather conditions in Europe and many regions in the US badly affected Shimano’s sales performance in 2013. Meanwhile the company reports strong growth of sports bicycles sales in emerging markets, particularly in China.
As a result, sales in bicycle components increased 9.6% from the previous year to JPY 217,263 million (1,551 mn euro) and operating income increased 1.3% to JPY39,505 mn (282 mn euro).
According to Shimano: “Distributor inventories of finished bicycles in Europe and North America were somewhat high but remained in an appropriate range. On the other hand, demand for repair parts grew strongly in virtually every market, including the regions that experienced poor weather.”
Depreciation of the yen
As a result of these market conditions, Shimano reports that shipments proceeded virtually as scheduled. Next tot that sales of new products, including Deore and Altus mountainbike components and Ultegra and Claris road bike components were buoyant. In combination with the depreciation of the yen the total sales of bicycle components fulfilled the forecast.
With the current economic outlook Shimano expects stable market conditions in Europe as well as the US. And, “growth in China and other emerging economies is tending to slow and likely to remain relatively sluggish,” says Shimano in its annual report. The company is worried about the upcoming consumption tax increase in Japan next April 2014 which will have “an immediate adverse impact on consumption”. For 2014 Shimano expects a cautious increase in sales of bicycle components by 3.4% to JPY224,600 mn (1,604 mn euro).
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.