A rebound in global bicycle production lifted Shimano Corp. in the second quarter ended June 30, according to an analysis of its first-half financial report.
Shimano reported total sales for the period rose 27.4% to $588 million. Operating income nearly tripled to $109.9 million on a 790 basis point increase in gross margins. That resulted in net income of $49.4 million, up more than fourfold for the quarter.
Shimano said that after a slow start in the first quarter, bicycle components sales recovered in the second quarter thanks to good weather in most of Europe and North America. For the first six months of the year, OEM shipments have exceeded Shimano’s expectations as bike makers raced to restore worldwide distribution inventories to normal levels.
Sales in Shimano’s Fishing Tackle segment increased 3.5% to $132.7 million. Sales in Japan were driven by 2010 models of the STELLA flagship spinning reel series, where they were remodeled for the first time in three years, and the Tankenmaru MINI – a mobile-phone-sized personal fish detector equipped with a camera. Shimano said the device is the latest addition to its Tankenmaru CV personal fish detector system, which is becoming popular with anglers in Japan, where it is driving increased sales of fishing tackle.
North America sales grew with the recovery, but the company said there “is growing concern” that the Gulf oil spill could impact the fishing tackle industry.
The company’s revised 2010 forecast now calls for net sales of ¥208 billion, up 11.4% from 2009 on a local currency basis. Shimano is expected operating income of ¥32 billion, up 60% from last year, and net income of ¥20 billion up from ¥9.5 billion in 2009. At the end of last year, Shimano forecast a 9% increase in sales.
