Shimano Inc., the parent of Pearl Izumi, reported net sales for the first nine months ended Sept. 30 reached ¥155.9 billion ($1.74 bb), up 15.9% from the same period in 2009. Operating income rose 86.6% to 25.6 billion yen ($286.2 mm), while net income rose 83.4% to 14.4 billion yen ($16.1 mm), or 152.7 yen ($1.70)per share.
The company said worldwide inventory of bicycles had almost returned to normal levels, which meant that orders in the OEM business were also approaching their normal pace as bike makers resume production of new models. Sales of the company's 105 series road bike components and Deore XT and XTR mountain bike component continued to enjoy brisk sales and order taking for the XTR flagship series was “buoyant.” As a result, sales in the Bicycle Components business rose 19.7% to 123.2 billion yen ($1.38 bb) over the nine months ended Sept. 30, 2009. Operating income for the segment rose 79.4% to 24.0 billion yen ($268.3 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 yen ($357 mm), while operating income rose 150.9% to 1.7 billion yen (19.0 mm).
Shimano said sales of its other businesses decreased 28.7% to 701 million yen ($7.8 mm).
The company increased its cash and time deposits by 8.33 billion yen to 69.2 mm yen ($773 mm), its inventory by 4.0 billion yen ($44.7 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 revise its guidance for fiscal 2010 to ordinary income of 27.0 billion yen ($302 mm) and net income of 18.5 billion yen ($206 mm).