Shimano, Inc. reported sales grew 18.3 percent in the nine months ended September 30 with sales expanding 20.6 percent in the Bicycle Components segment and 9.0 percent in the Fishing Tackle segment.
Net sales reached ¥467,665 million in the nine months. Operating income increased 18.3 percent to ¥126,576 million, ordinary income increased 31.8 percent to ¥149,862 million, and net income attributable to owners of parent grew 31.9 percent to ¥113,486 million.
Shimano wrote in its financial press release, “During the first nine months of fiscal year 2022, the pace of global economic recovery slowed primarily because prices soared due to resource and energy supply constraints and rising resource prices caused by the situation in Ukraine, and central banks in various countries took steps to raise interest rates sharply to curb accelerating inflation.
“In Europe, consumer sentiment deteriorated due to high inflation and concerns about energy supply, while monetary tightening aimed at curbing inflation increased fears of a recession.
“In the U.S., although rising prices put downward pressure on consumers’ purchasing power, a solid employment environment and rising wages continued to fuel steady personal consumption.
“In China, following the easing of restrictions on activities due to the zero-COVID policy, postponed demand began to emerge, and personal consumption picked up.
“In Japan, while prices of day-to-day necessities rose due to the depreciation of the yen, signs of a gradual recovery in personal consumption were seen due to expectations of normalization of economic activities following the government’s easing of measures against the novel coronavirus (COVID-19).
“In this environment, demand for bicycles and fishing tackle remained firm, although showing signs of cooling down.”
Bicycle Components Segment Sales Improve 20.6 percent
Sales in the Bicycle Components segment jumped 20.6 percent from the same period of the previous year to ¥384,654 million, and operating income increased 21.6 percent to ¥109,119 million.
Shimano said, “Although the strong interest in bicycles showed signs of cooling down, demand for bicycles remained above the pre-COVID-19 levels. In terms of market inventories of completed bicycles, those of high-end class bicycles remained at a low level, as strong demand continued.
“Meanwhile, those of middle-class bicycles approached appropriate levels, and those of entry-class bicycles remained at a high level.
“Overseas, in the European market, excluding some areas in which demand has cooled down, sales of bicycles and bicycle-related products remained firm. Despite a shortage of products, especially e-bikes and high-end class road bikes, market inventories approached appropriate levels.
“In the North American market, while market inventories of high-end class bicycles, for which demand was firm, remained at a low level, demand for middle-class bicycles tended to cool down.
“In the Asian and South and Central American markets, interest in bicycles cooled off. However, in the Chinese market, where sales remained strong, market inventories remained at a low level.
“In the Japanese market, although demand for sport bikes and e-bikes remained firm, market inventories of completed bicycles remained somewhat high, except for those of entry-class road bikes. Under these market conditions, order-taking was brisk for a wide range of products, including the new product Shimano 105 which is a high-end model for road bikes, and sport e-bike components, Shimano Steps series.”
Fishing Tackle Segment Sales Increase 9.0 percent
Net sales from the Fishing Tackle segment increased 9.0 percent from the same period of the previous year to ¥82,653 million, and operating income increased 1.7 percent to ¥17,482 million.
Shimano said, “Strong interest in fishing that attracted attention globally showed signs of cooling down.
“In the Japanese market, sales of mid- to high-priced products remained strong, although sales of popularly priced products for families and beginners slowed down and there were impacts from typhoons and other factors as well.
“Overseas, in the North American market, although demand remained high for saltwater products, sales lacked strength under logistics disruption and prolonged inflation.
“In the European market, although logistics concerns and high inflation in the U.K. caused a sense of stagnation in the market, there were signs of firm demand in some areas of Eastern Europe, and sales remained strong.
“In the Asian market, sales were favorable in the Taiwanese and Southeast Asian markets, where demand for fishing tackle is expanding, and in the Chinese market, which has recovered from the effects of lockdowns, partly due to the easing of the zero-COVID policy.
“In the Australian market, sales remained firm in preparation for the full-fledged fishing season.
“Under these market conditions, new products such as spinning reels ULTEGRA XTE and electric reels Shimano Inc. (7309) Summary of Consolidated Financial Results for the First Nine Months of FY2022 3 BEASTMASTER MD were well-received in the market. In addition, spinning reels STELLA and other products continued to make a great contribution to sales.”
Shimano adjusted its guidance for the year based on the recording of non-operating income associated with the depreciation of Asian currencies caused by the ongoing U.S. dollar’s appreciation during the first nine months of fiscal year 2022, and considering current trends, such as the rapid depreciation of the yen and soaring raw material prices.
Sales for the full year are now expected to reach ¥590,000 million, up 8.0 percent; operating income is expected to reach ¥163,500 million, ahead 10.3 percent; ordinary income is expected to reach ¥188,500 million, up 23.6 percent; net income attributable to owners of the parent is expected to reach ¥136,300 million, up 17.6 percent.
Previously, net sales were expected to be ¥590,000 million, operating income, ¥163,500 million, ordinary income ¥188,500 million, and net income attributable to owners of the parent, ¥136,300 million.