Shimano Group reported that first quarter sales increased 1.3 percent to ¥50.9 billion ($619 mm) with a small gain in the bicycle component business partially offset by a slight decline in fishing tackle revenues. Bicycle Component division sales rose 2.2 percent to ¥40.8 billion ($496 mm) while Fishing Tackle division revenues dipped 1.1 percent to ¥9.9 billion ($121 mm). Other businesses revenues fell 37.6 percent to 164 million ($2.0 mm).
The company reported that the Japanese economy had been gaining traction thanks to a government economic stimulus package and the “rising tide of demand” in emerging economies in Asia, but the earthquake “dealt a heavy blow” to the Japanese economy.
Overall net income fell 56.5 percent to ¥2.2 billion ($27 mm). Consolidated operating income increased 1.1% to ¥7.3 billion ($89 mm), with operating income in the Bicycle Components business improving 2.9 percent to ¥7.2 million ($87 mm) and operating income in the Fishing Tackle business falling 41.7 percent to ¥190 million ($2.3 mm). The Other Businesses segment posted a ¥62 million ($0.6 mm) operating loss for the period.
