Shimano, Inc. reported that revenues for the first quarter declined in double-digits, but net income improved thanks to a boost in non-operating income and lower taxes.  Net revenues fell 18.9% to ¥45.1 billion ($483 mm) for the period ended March 31, compared to ¥55.6 billion ($528 mm) in the year-ago period.  Net income improved 2.3% to ¥5.5 billion ($59 mm), compared to ¥5.4 billion ($51 mm) in Q1 last year.

Gross margins narrowed a bit for the period, dipping 40 basis points to 34.5% of net sales, compared to 34.9% in the year-ago period.  SG&A, as a percent of sales, grew 400 basis points to 23.1% of net sales from 19.1% in Q1 last year.

Inventory grew slightly, inching up 0.6% to ¥42.9 billion ($441 mm) at quarter-end.

Looking ahead, Shimano has lowered its sales and profit forecasts for the year, now expecting full year net income of ¥17.5 billion on revenues of ¥195.0 billion.  The revised estimates are a reduction from initial forecasts calling for net income of ¥20.0 billion and ¥205.0 billion in revenues.  Last year, Shimano produced ¥25.2 billion in net income on revenues exceeding ¥235.1 billion.