Shimano Inc. reported net sales for the first nine months ended Sept. 30 reached ¥155.9 billion ($1.74 bb), up 15.9% from the comp period in 2009. Operating income rose 86.6% to ¥25.6 billion ($286 mm), while net income rose 83.4% to ¥14.4 billion ($16 mm), or ¥152.7 ($1.70) per share.
The company, which is one of the world’s two premier cycling component suppliers and parent of Pearl Izumi, said worldwide inventory of bicycles had almost returned to normal levels, prompting OEMs to resume production of new models earlier than normal. Sales of the company's 105 series road bike components and Deore XT and XTR mountain bike components continued to enjoy brisk sales and order taking for the XTR flagship series was “buoyant,” executives said. As a result, sales in the Bicycle Components business rose 19.7% to ¥123.2 billion ($1.38 bn) over the nine-month YTD 2009. Operating income for the segment rose 79.4% to ¥24.0 billion ($268 mm).
Sales of fishing tackle were less robust as an extremely hot summer kept more Japanese indoors. Sales rose 4.7% to ¥32.0 billion ($357 mm), while operating income rose 150.9% to ¥1.7 billion ($19 mm).
“Other” business sales decreased 28.7% to ¥701 million ($8 mm).
The company increased its cash and time deposits by ¥8.33 billion to ¥69.2 billion ($773 mm) and its inventory by ¥4.0 billion ($45 mm).
Shimano said the economic outlook in Japan remained unpredictable given possible further appreciation of the yen, deflationary pressure in Japan and the pace of economic recovery abroad. This prompted the company to lower its guidance for fiscal 2010 ordinary income to ¥27.0 billion ($302 mm) from ¥29.0 billion and lower its forecast for net income to ¥18.5 billion ($206 mm) from ¥20 billion.
