Shimanos second quarter did not meet expectations, with sales only climbing 1.4% to ¥42.5 billion ($395.9 mm) compared to ¥41.9 billion ($383.1 mm) last year.
Sales of bicycle components accounted for 70.7% of sales, or $279.9 million, a 1.6% increase over last year in spite of much higher demand reported throughout the bicycle industry. Sales of fishing equipment increased 2.2% for the quarter to $109.3 million, or 27.6% of Shimanos overall business. Other sales, like golf equipment and snowboard bindings, accounted for the remaining 1.7%, or $6.7 million, a decrease of 14.0% compared to last year.
Net income for the quarter increased 2.4% to ¥4.5 billion ($42.2 mm) in spite of declining operating margins, which fell to 14.8% compared to 17.7% last year.
For the first half, year-to-date period, Shimanos sales remained relatively flat with a 0.2% increase to ¥85.0 billion ($802.6 mm). Bicycle component sales inched-up 0.1% to ¥63.3 billion ($598 mm) while fishing sales increased 1.0% to ¥20.2 billion ($191.0 mm).
Sales in Japan and Asia fell 4.8% and 8.2% respectively while sales in America climbed 8.7% to $143.7 million and accounted for roughly 18% of Shimanos total business compared to 16.5% last year. Sales in Europe increased 3.2% to 257.1 million ($330.7 mm) and accounted for 41% of the companys business compared to 40% last year. Year-to-date net income remained flat at ¥9.3 billion ($88.3 mm) while operating margins dropped 130 basis points to 15.8%.
