Shimano Reports Slow 2017 Start
SAKAI CITY, Japan – Compared to last year, the 2017 half-year sales and operating income decline of Shimano’s bicycle division was less dramatic, although the Japanese component manufacturer still reports decreasing financial results.
In the first half year of 2017 Shimano’s bicycle component sales reached JPY 129.080 billion (€993 million) down 2.7% on 2016 and an operating income of JPY 27,06 billion (€208 million); a drop of 11.5%. In last year’s Q1-Q2 financial statement, Shimano reported a much bigger decline of its total sales (-18.6%) and operating income (-28.5%).
Full year forecast revised
Shimano revised its full year forecast considering the results in the first half of 2017, the impact of raw material cost increases and product mix changes. The total sales, bicycle components, fishing tackle and others together, is expected to reach JPY 330 billion (€2.53 bn) while the forecast of the operating income is down from JPY 66 billion to JPY 63 billion (€483m); minus 4.5%. In 2016 Shimano’s operating income was JPY 64,55 billion (€495m).
“In Europe retail sales of complete bicycles were at the expected level for a typical first half, and distributor inventories of bicycles in Europe remained at an appropriate level although the spring season was blessed with good weather until Easter in mid-April while the weather became unsettled and continued until early May,” reports Shimano in its financial statement.
“In North America, retail sales of complete bicycles were approximately the same as the previous year’s level and distributor inventories remained somewhat low. In China, the sharp growth in bike sharing hampered a recovery of retail sales of complete bicycles, which had been lackluster since 2015. Although retail sales of low-end bicycles were particularly weak, distributor inventories were at an appropriate level.”
Despite these hurdles both the new ‘Deore’ mountain bike components released in May 2017 and the ‘Ultegra’ road bike components released in June 2017 were well received in the market.
* Shimano Inc. has announced figures in JPY currency only. EUR equivalent amount is calculated by up-to-date exchange rate for the reference.