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Indications of Effects Financial Crisis on Bike Sector

MUNICH, Germany – How is the financial crisis affecting the bike sector? That is currently the much debated topic. The performance of companies operating in the bike sector which are listed on the stock exhange can offer more insight on the answer of that question.

When comparing these performances with the major stock exchange indices, then it shows that the 2008 share value declines of the bike companies are on par with the indices.
 
At least that’s what the stock rates show per end of December 2008 (scroll down for rates). On average companies operating in the bike sector that are listed on the various stock exchanges all over the world saw their share value drop by 39%.

Looking closer at the stock exchange indices then it shows that the German DAX index dropped by 43%; The French CAC 40%; the FTSE Eurofirst 300 index fell by 44.8%; the Japanese Nikkei by 42.1%; the US Standard & poor 500 went down by 38.5% and the Dow Jones Industrial Average fell by 33.8%. So, with a 39% decline, the bike companies are not performing better, but also not worse compared to the general picture.

Also increased share value

There are even some bike companies that are outperforming the general decline. Moreover, there are companies that managed to increase their share value in 2008. The world’s biggest bike maker for instance, Giant Manufacturing Comp. Ltd listed on the Taipei stock exhange saw its share rate increase by 1.5% when comparing the value per January 1, 2008 with the rate on December 31, 2008!

Three other companies also managed to increase their share values: Miyata Comp. Ltd listed in Tokyo with 26.1%; Japanese wholesaler Asahi Company Ltd. (web shop and franchise store supplier – 163 outlets in Japan) with a share value increase 2008 of 64.1% while the listing of Falcon Power Comp. Ltd, Taipei shows a very remarkable 176% plus. This huge increase must be the result of a recapitalization and is because of that not included in our calculations.

Performance of Publicly Listed Companies Operating in Bike Sector

2008 Curr. Rate  Rate Diff.
Company Name . 1-01-08 31-12-08 in %
Accell Group NV, Amsterdam EUR 24.94 18.00 -27.8
Amer Sports Oyi, Helsinki EUR 18.49 5.36 -71
Araya Industrial, Osaka               JPY 257.00 157.00 -38.9
Asahi Co., Ltd. JPY 1,390 2,280.00
Atlas Cycles (Haryana) Ltd., Bombay INR 230.05 83.00 -63.9
Pro Metalurgia S.A., Sao Paulo BRL 0.51 0.14 -72.5
Bridgestone Corp., Tokyo JPY 1,988.00 1,327.00 -33.2
Cheng Shin Rubber, Taipei TWD 52.9 28.2 -46.7
Continental AG, Frankfurt EUR 88.89 28.88 -67.5
Compass Diversified Holdings, New York US$ 12.28 9.96
Dorel Industries Inc., Quebec US$ 30.17 22.62 -25
Falcon Power Company Ltd., Taipei TWD 6.15 17.00 *
Giant Manufacturing Company Limited    TWD 71.8 72.90 1.5
Halfords Group PLC, London GBP 305.75 246.25 -19.5
Hwa Fong Rubber Ind. Co., Taipei TWD 8.18 8.10 -1
Ideal Bike Corporation, Taipei TWD 14.9 8.56 -42.6
Ingersoll-Rand Co. Ltd., New York US$ 46.69 17.09 -63.4
Kenda Rubber Co., Taipei TWD 22.3 14.30 -35.9
Lee Chi Ent. Co. Ltd., Taipei TWD 10.00 7.87 -21.3
Merida Ind. Co. Ltd., Taipei TWD 58.5 40.75 -30.3
Michelin Group, Paris EUR 79.35 37.35 -52.9
Mifa Mitteldeutsche Fahrradwerke AG EUR 2.25 1.25 -44.4
Miyata Ind. Co., Ltd., Tokyo JPY 138.00 174.00 26.1
Munjal Auto Ltd., Bombay INR 103.45 31.95 -69.1
Jinshan Development & Construction Co. Ltd. US$ 0.90 0.29 -67.8
Zhonglu Company Ltd., Shanghai US$ 1.07 0.42 -60.7
Shimano Inc., Tokyo JPY 4,050.00 3,510.00 -13.3
Sun Race Sturmey-Archer Inc. TWD 6.43 5.08 -21
Tandem Group PLC, London GBP 15.05 6.00 -60.1
Tsunoda Co. Ltd., Tokyo JPY 223.00 188.00 -15.7
Tube Investments of India Ltd. (TII), Bombay INR 80.95 36.00 -55.5

Average share value drop 2008: 39% 

* Falcon Power Company Ltd., Taipei not included in the calculation

 

08-01-2009
Jack Oortwijn/Jo Beckendorff
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