Shimano Corp. reported consolidated net sales reached ¥213.6 billion ($2.43bn) in 2010, up 14.4% from 2009. Ordinary income rose 37.9% to ¥27.8 billion ($317.5mm) and net income doubled to ¥19.1 billion ($218.1mm).
- Bicycle Components: Sales rose 17.1% to ¥169.4 billion ($1.93bn). Operating income rose 65.1% to ¥31.0 billion ($352.0mm). Bicycle Components The company said a adjustment of the bicycle inventory worldwide that began in 2009, was completed by early fiscal year 2010 and distribution inventories resumed normal levels during the balance of the year. In the major markets of Europe and North America, although retail sales were lackluster in January and February owing to unusually severe winter weather, they remained firm from March onward. Products that Shimano introduced in the second quarter, namely, the new 105 series for road bike components and Deore XT and SLX for mountain bike components, continued to enjoy brisk sales. In the third quarter, Shimano introduced the fully remodeled XTR flagship series for mountain bike components and order-taking for the series was buoyant. In the fourth quarter, reflecting robust retail sales and normal-level distribution inventories, sales of Shimano’s 2011 spring models were brisk.
- Fishing Tackle: Sales rose 16.4% to ¥43.3 billion ($494.5mm). Operating income rose 72.31% to ¥1.97 billion ($22.4mm). New products drove sales in Japan, including the 2010 models of the STELLA flagship spinning reel series launched to coincide with the spring and summer fishing season, other mid-range and high-end reels, and the Tankenmaru MINI mobile-phone-size personal fish detector equipped with a camera. In the second half, the Wakasagimatic series of electric reel systems incorporating state-of-the-art functions for surf fishing of smelt gained popularity. Sales of fishing tackle were brisk throughout the year. Despite the impact of the strong yen, severe winter weather and a stalled economic recovery affecting several European countries, and the negative impact on consumer sentiment in the U.S. of the Deepwater Horizon oil spill in the Gulf of Mexico, sales overseas exceeded the previous year’s level, with the increase being particularly marked in Asia.
- Others: Sales from other businesses decreased 32.1% to ¥898 million ($10.3mm), producing an operating loss of ¥228 million ($2.6mm), compared to a loss of ¥491 million in 2009.
For the fiscal year ending Dec. 31, 2011, Shimano Group forecasts net sales growth of 3% to ¥220 billion and operating income of ¥33 billion, an increase of 18.9% and net income of ¥22 billion, up 15.1%.
While China, India and other emerging economies are expected to continue to enjoy robust growth, there is concern that the tempo of recovery may slow in the European economies, the U.S. and other advanced countries, undermined by a credit crunch and high unemployment.
“Although the Japanese economy is expected to keep to a modest recovery track supported by the dynamism of emerging economies centering on Asia, the situation is expected to remain unpredictable as personal consumption is likely to weaken once the impact of the government’s policies wears off and a persisting strong yen will hamper export competitiveness,” the company said.
