Shimano, Inc. reported net revenues fell 11.4% to ¥50.22 billion ($554 mm) for the period ended March 31, compared to ¥45.09 billion ($483 mm) in Q1 last year. Net income improved 8.5% to ¥5.50 billion ($60.7 mm), compared to ¥5.07 billion ($54.3 mm) in Q1 2009.
Operating income in the Bicycle segment increased 35.0% for the quarter to ¥6.98 billion ($77 mm) and Fishing segment operating income jumped 222% to ¥325 million ($4 mm).
Gross margins narrowed for the period, dipping 910 basis points to 31.0% of net sales, compared to 40.1% in the year-ago period. SG&A, as a percent of sales, was down 330 basis points to 20.7% of net sales from 24.0% in Q1 last year.
Shimano said retail sales during January and February were sluggish due to a harsh winter in the northern hemisphere, but added that the company had seen a rebound in March. Likewise, sales of spinning reels and rods both drove fishing sales for the quarter.
Looking ahead, Shimano revised forecasts for the first half for the year ending December 2010. The company now expects net sales of ¥101,500 million ($1.12 bn) operating income of ¥14,000 million ($154.4 mm) and net income of ¥9,000 million ($99.3 mm). The full year forecast remains unchanged.
