Despite Head Wind Shimano Scores Satisfactory Sales
TOKYO, Japan – Lower consumer spending in the US; the crisis in Europe that keeps on going combined with unfavorable weather conditions had some impact on Shimano‘s first quarter results.
Consolidated sales of the biggest parts maker for bicycles in the world increased by just 1.3% to JPY63,278 million (€496.9m). The company’s operating income dropped by 9.4% to JPY9,755 million (€76.6m), while net earnings increased by 9.3% to JPY7,652 million (€60.1m).
In its comments on the first quarter results , Shimano reports that it felt in Europe the continued crisis and in the US the impact of lower consumer spending. But, despite unfavorable weather conditions in Europe and North America, demand was satisfactory. For Europe Shimano reports further that it is satisfied with its inventories, but considers those at retail to be relatively high at this stage.
For China Shimano points at the economic slowdown ,but also says that demand for sports bicycles continues to grow. All this combined with good results in Australia and Oceania made that revenuws with bike parts sales increased by 2.7% to JPY51,130 million (€401.7m) compared with the first three months of last year. Sales of fishing equipment dropped by 3.9% to JPY12,063 million (€94.7m).
Shimano maintains a cautious outlook for the first half of 2013 with net sales expected to increase by only just 1.6%. Operating profit is estimated to drop 4% and net income forecasted to decline by 1.6%. Shimano is more optimistic for the full year with a 3.7% rise in net turnover.