Shimano Adjusts Profit Forecast
In its financial report for the first quarter of 2011 Shimano expresses its concern over the continuing turmoil of the Japanese economy caused by the Great East Japan earthquake. The Japanese component supplier is also pointing out that the prospects for advanced countries which are
OSAKA, Japan – In its financial report for the first quarter of 2011 Shimano expresses its concern over the continuing turmoil of the Japanese economy caused by the Great East Japan earthquake. The Japanese component supplier is also pointing out that the prospects for advanced countries which are on a moderate recovery track remain uncertain while China and other Asian countries are likely to enjoy a continuing robust economic growth.
As a result for the first quarter of the fiscal year 2011, the consolidated net sales in bicycle components increased by 2.2% from the same period of the previous year to € 313 million (JPY 40.8 billion) and the operating income increased by 2.9% to the € 55 million (JPY 7.2 billion).
During the first quarter of 2011 Shimano noted that retail sales in January were lackluster due to the winter weather conditions, but picked up in February and have been buoyant since March. Retail sales in North America have been brisk since the beginning of the year.
Reflecting the high interest in cycling worldwide, shipments of Shimano products were upbeat in readiness for bicycle sales at retailers which move into high gear in March. As a result Shimano’s sales reached its targets in the first quarter.
Looking back on the results in the first quarter of 2011 Shimano has revised the forecasts announced on 8 February 2011 for the first half of this year. The revised forecast is as follows: the consolidated ordinary income € 111 million (JPY 14.5 billion), the consolidated net income € 169 million (JPY 22 billion) and the consolidated net sales € 1,536 million (JPY 200 billion).
* Please note that Shimano Inc. has announced figures in JPY currency only. EUR equivalent amount is calculated by up-to-date exchange rate for the reference, the company assumes no responsibility for this translation or for direct, indirect or any other forms of damages arising from the translation.