Shimano reported earnings nearly doubled in the nine months as sales grew 49.6 percent. Bicycle Components segment sales grew 56.0 percent while Fishing Tackle segment sales gained 27.6 percent.

Shimano’s Nine-Month Results
Shimano said in a statement, “During the first nine months of fiscal year 2021, while restrictions on activities were eased along with the progress of the COVID-19 vaccinations around the world, with signs of changes starting to appear in people’s lifestyles in the post-COVID society, the pace of economic recovery varied from region to region. In Europe, the trend of resuming economic activities spread in line with the widespread use of vaccinations against a resurgence in new cases of infections caused by variants, leading to a solid recovery in personal consumption.

“In the U.S., widespread use of vaccinations normalized economic activities, and the economy continued to recover led by personal consumption, backed by suppressed consumption and economic measures in the COVID-19 pandemic. In Japan, the declaration of a state of emergency continued to be issued in response to a significant spread of infections caused by variants, and uncertainty over the future economic outlook remained strong and personal consumption weakened.

“In this environment, some of the Shimano Group’s factories experienced a tightening of global logistics and temporary shutdown due to lockdown. However, interest in and demand for bicycles and fishing continued to be high, and the Shimano Group increased production capacity at the factories in Japan and overseas. As a result, for the first nine months of fiscal year 2021, net sales increased 49.6 percent from the same period of the previous year to 395,187 million yen. Operating income increased 97.0 percent to 106,973 million yen, ordinary income increased 93.8 percent to 113,724 million yen, and net income attributable to owners of the parent increased 82.1 percent to 86,024 million yen.”

Bicycle Components Sales Climb 56.0 Percent
Shimano said, “Strong demand for bicycles remained at high levels in all markets, against a backdrop of the global cycling boom, triggered by the spread of COVID-19. In Europe, demand for bicycles and bicycle-related products continued to be high and market inventories remained at low levels, backed by active support from governments, including bicycle lane building to realize a decarbonized society.

“In the markets of North America, South and Central America, and Oceania, although there were signs of a lull in the cycling boom, market inventories remained at low levels due to strong demand. In Asia, while demand for mid to high-end bicycles remained solid, demand for entry-level bicycles appeared to have settled down and market inventories approached appropriate levels. In the Japanese market, as retail sales for cross bikes used for recreation and as a mode of transportation for commuting to work and school, for entry-level road bikes, and for e-bikes remained solid, market inventories remained largely at appropriate levels.

“Under these market conditions, while production was further increased in response to high demand, two top-end models of the fully redesigned road bike components, Dura-Ace and Ultegra, were enormously well-received by customers. As a result, net sales from this segment increased 56.0 percent from the same period of the previous year to 319,007 million yen, and operating income increased 103.4 percent to 89,764 million yen.”

Fishing Tackle Sales Increase 27.6 Percent
Shimano said, “As vaccinations to prevent the spread of COVID-19 has progressed worldwide, people’s lives are gradually returning to normal. In the midst of this trend, fishing remained popular and the market continued to thrive. In the Japanese market, although there were signs of a lull in the fishing boom and impacts from the declaration of a state of emergency and heavy rain events, sales remained robust, supported by the favorable performance of reels, rods and salt lure-related products, centering around mid-range and popular price range products.

“Overseas, in the North American market, demand for fishing tackle showed no sign of slowing down, and sales remained robust, boosted by the thriving market. In Europe, while there were restrictions on movements in some countries, such as lockdowns, sales remained solid, supported by progress in online sales, in addition to over-the-counter sales in the regions where vaccinations were widespread. In Asia, sales remained favorable, led by strong demand for high price range products. In Australia, sales remained favorable, supported by strong demand.

“Under these market conditions, in addition to new products, spinning reels Vanford and Stradic, bait reels Curado series, and rods SLX series continued to be well-received in the market. As a result, net sales from this segment increased 27.6 percent from the same period of the previous year to 75,850 million yen, and operating income increased 67.6 percent to 17,198 million yen.”

Outlook
For 2021, Shimano’s outlook calls for sales of 515,000 yen, up 36.2 percent. Operating income is expected to reach 135,500 million yen, a gain of 63.8 percent. Net income is expected to total 103,700 million yen, up 63.4 percent. Previously, Shimano expected sales of approximately 500,000 million yen, up 32.3 percent, operating income to be ¥124,500 million yen, up 50.5 percent and net income of ¥93,700 million yen, up 47.6 percent.

Photo courtesy Shimano