Shimano: ‘Recovery Pace Accelerating in Europe
TOKYO, Japan – Favourable market conditions in the US and Japan in combination with a mild winter in Europe had a positive impact on Shimano‘s first quarter results.
Consolidated sales of the biggest parts maker for bicycles in the world increased by no less than 19.6% to JPY 75,695 million (€ 537.3m). The company’s operating income increased by 45.8% to JPY 14,227 million (€ 101m), while net earnings went up by 30.4% to JPY 9,980 million (€ 70.8m).
In its comments on the first quarter results, Shimano reports that the pace of recovery accelerated in Europe and consumer spending increased again in combination with a mild winter. The US experienced a very harsh winter but the impact on bicycles sales was limited. For all regions Shimano reports that distributor and retailer inventories were on an appropriate level.
According to Shimano order-taking was brisk against a backdrop of rising expectations in view of promising market trends. Shimano products were relatively affordable because of the depreciation of the yen.
Confident market forecast
Shimano maintains a cautious outlook for the first half of 2014. Although the economies of the US and Europe are relatively robust, Shimano still think they all have their issues and the pace of the economic improvement will moderate. For Europe the protracted problems in Ukraine is still a matter of concern.
For the first half of 2014 Shimano expects a net sales of JPY 145,200 million (€ 1030.6m) and a net income of JPY 17,400 million (€ 123.5m).