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
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