Shimano Starts 2016 With Major Sales Drop
OSAKA, Japan – Shimano reported last Tuesday a 20.3% decline in net sales of bicycle components in the first quarter of 2016 compared with the same period in the previous year.
Between January and March the net sales of bicycle components totalled 65,282 million yen (530 million euro). Shimano’s operating income decreased by more than one third (34.4%) to 14,458 million yen (117 million euro). In its market outlook Shimano describes both the European and North American market as positive with buoyant sales in the first quarter of 2016.
According to Shimano, “Distributor inventories of bicycles in Europe remained at an appropriate level. In North America, distributor inventories, which have been accumulating relatively high, are likely to adjust to appropriate levels within the first half of fiscal year 2016. In China distributor inventories remained high, but adjustment to an appropriate level is gradually underway. As regards to other emerging markets, whereas retail sales in Southeast Asia remained robust, those in South America were lackluster because of the economic slowdown and weak currencies. In these market conditions, segment net sales for the first quarter of fiscal year 2016 achieved the initial target.”
Overall economic outlook
Less positive is Shimano about the overall economic outlook mentioning the, “Frequent terrorist attacks in Europe which raised concerns about a possible decline in tourists from overseas and cooling of consumer sentiment together with the signs of diminished vigour of personal consumption in the US due to unstable energy prices as well as the weak Japanese economy since the appreciation of the yen since the end of the previous year.”
* Shimano Inc. has announced figures in JPY currency only. EUR equivalent amount is calculated by up-to-date exchange rate for the reference.