Shimano Inc. said net sales at its cycling business rose by ¥7.8 billion ($7.4 mm), or 22%, to ¥43.3 billion ($411 mm) in the first quarter ended March 31. Fishing tackle net sales, however, dipped by ¥142 million ($1.4 mm), or 1.2%, to ¥11.4 billion ($108.3 mm).
The Japanese company said strong sales growth outside North America propelled double-digit revenue growth for the entire company. The North American market lagged well behind the rest of the world with sales declining 7.3%, or ¥332 million yen ($3.2 mm), to ¥4.2 billion ($39.9 mm) in the quarter. By contrast net sales grew 21% in Asia, 18% in Japan and 10.7% in Europe. Companywide, revenues reached ¥55.6 billion ($528mm) in the first quarter, up 15.9% from ¥47.9 billion ($455 mm) in the year ago quarter.
Gross profits rose 17.6% or ¥2.9 billion ($2.8 mm) to ¥19.3 billion ($183.4 mm). Operating income rose 28.8% to ¥8.8 billion ($8.4 mm). Net income rose 14.7% to ¥5.3 billion ($4.8 mm), or ¥55.7 per share (53 cents).
Inventories rose 7.2%, or ¥2.9 billion ($2.6 mm), to ¥42.6 billion ($404.7 mm).
Shimano did not alter its forecast and still expects net sales to rise 13.2% to ¥113 billion ($1.07 bn) for the first six months of the year. Its guidance calls for operating income to rise 22.2% and net income 18.7% in the first half of the year.
