Shimano Records Modest Increase in Bike Parts Sales
In the first half of 2011 Shimano saw its sales of bicycle components increase by a modest 3.3% from the same period of the previous year. Operating and net income were down with double digit figures. To improve its results, the world biggest bicycle component maker announced:…
OSAKA, Japan – In the first half of 2011 Shimano saw its sales of bicycle components increase by a modest 3.3% from the same period of the previous year. Operating and net income were down with double digit figures. To improve its results, the world biggest bicycle component maker announced: “To further improve operating efficiency and concentrate on creating a stream of captivating products.”
The net sales of Shimano Inc. amounted 107,134 million Japanese yen (966.2 million euro) in the first half of 2011; up 2.6% on the same period of 2010. Operating income dropped 11.8% to 15,244 million yen (137.5 mn euro) while net income was down 28.2% to 6,904 million yen (62.3 mn euro).
In its financial report the component maker reports that in Europe: “Retail sales were buoyant thanks to good weather from late March to May in most regions. In North America, retail sales were virtually the same level as in the same period of the previous year even though spring weather arrived later than in the previous year and the weather tended to be unstable.”
“The market in China is expanding owing to a great increase in demand for sports bicycles. In Japan, despite indications of an upturn in the economy, notably the rise in exports underpinned by growing demand in emerging economies centering on Asia, a decisive recovery of the Japanese economy did not materialize, partly because of the strength of the yen. The Great East Japan Earthquake of March 11 cast a shadow over the outlook for the Japanese economy, which had been showing signs of a moderate recovery.”
Shimano financial reports further stated: “In these circumstances, inventories of bicycles held by distributors remained at normal levels worldwide, a situation continuing from the previous fiscal year. Shipments from Shimano proceeded almost as planned and sales of Deore XT mountain bike components and Tiagra road bike components and other new products were brisk.”
In its outlook for the second half of the year Shimano reported that the European and US countries are expected to continue on their moderate recovery track. The same holds true for Japan because of the aftermath of the Earthquake in March while China and other Asian countries are likely to enjoy continuing robust economic growth.
Shimano Inc. further noted: “Under these circumstances, inspired by its mission—“To create new value and promote health and happiness through the enjoyment of nature and the world around us”—the Shimano Group strove to vitalize the market by tempting consumers with a stream of captivating products.”
* 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.