Shimano Expects Double Digit Drop

TOKYO, Japan – The world’s biggest in bike components can look back on an excellent 2008 in which its net income (after tax) showed an over 25% growth. Total sales came close to 2 billion euro and increased 11.0%.

However, Shimano’s outlook for this year is totally different as the company forecasts a 11.8% drop in sales of bike components and a 12.8% drop in total sales. The same double digit drop is indicated for Shimano’s 2009 net income. Here the company is preparing for a slightly over one fifth decrease.

Looking at Shimano’s statement on its 2008 financial results and its forecast for 2009 it is clear that the global operating specialist in bike components is able to withstand the current economic turmoil as it had bumper years in 2007 and 2008.

This is underlined when looking back at Shimano’s 2006 net sales. During that year the company’s net sales stood at slightly over 1 billion euro; 2008 shows total sales of 1.959 billion euro (without taking currency rate differences into account).

Bike sales are still Shimano’s main money maker as it ended at 1.549 billon euro in turnover compared to only 0.386 billion in fishing tackle.

Shimano’s 2008 net income upped 26.4% to close to 210 million euro and stands at 10.7% of total sales. For 2009 net income is forecasted to drop 20.5% to 167 million euro.

Shimano Group Consolidated Financial Results (x euro 1,000*)

• Exchange rate JPY & euro: € 1 = JPY 120.00
• JPY 1 = € 0,0083333
• Net income: after tax
  
  
  
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