Shimano Inc. reported revenues rose 13.1 percent in the nine months ended Sept. 30, to ¥182.7 billion from ¥161.6 billion in the year-ago quarter. Net income reached ¥20.5 billion up 79.3 percent from the ¥11.4 billion earned in the year ago period.
Operating income in the nine months improved to ¥31.8 billion from ¥22.7 billion a year ago.
Breaking out third-quarter results, sales improved 17.6 percent to ¥64.1 million from ¥54.5 million. Earnings climbed 17.8 percent to ¥5.3 million from ¥4.5 million a year ago.
In its Bicycle Components segment, sales in the nine months increased 13.6 percent ¥146.2 billion and operating income increased 40.6 percent to ¥29.8 billion. Shimano said in Europe, a major market for Shimano products, retail sales remained at virtually the same level as for the corresponding period of the previous year, thanks to the warm weather from late July onward “despite sluggish business in the spring when the weather was unsettled.”
In North America, sales in the Bicycle Components segment in the nine months continued to exceed the previous year’s level “following buoyant sales helped by the mild winter and stable spring weather.”
Demand for sports bicycles in China, having surged in the previous year, continued to rise, although sales could slow toward the end of 2012 as the Chinese economy may have peaked. In Southeast Asia and South America, demand for sports bicycles is rising. In contrast, retail sales in Japan were lackluster “amid unsettled weather. In these market conditions, shipments from Shimano proceeded virtually as planned.”
New models introduced in the second quarter of 2012, including those of the SLX mountain bike components, the SORA road bike components, and the Tourney A070, continued to be sold well. Additionally, new models introduced in the third quarter, namely, those of the DURA ACE top-of-the-line road bike components and the Deore LX trekking bike components, “swiftly gained a favorable reputation in the market, with Shimano receiving a high volume of orders.”
In the third quarter, sales improved 8.3 percent to ¥48.2 from ¥44.4 million a year ago. Earnings rose to ¥9.5 million from ¥6.9 million a year earlier.
In its Fishing Tackle segment, increased 11.6 percent in the nine months to ¥36.2 billion and operating income increased 27.0 percent to ¥2.2 billion.
Sales weakened in North America in the nine months owing to “bouts of extreme weather, such as heat waves and hurricanes.” However, total sales in overseas markets increased, assisted by continued robust sales in Oceania.
In the Japanese market, retail sales “remained lackluster amid prolonged unsettled weather,” including record rainfall and a powerful typhoon that hit Kyushu and other areas of West Japan. Despite the uncertain market environment, sales of Shimano products were described as “brisk.” Sales of electric reels, high-end spinning reels and bait casting reels for lure fishing increased while sales of rods for boat fishing, surf fishing, and lure fishing also rose. Sales in Europe were affected by the economic downturn triggered by the sovereign debt crisis.
In the third quarter, sales in the fishing tackle segment advanced 10.1 percent to ¥10.9 billion from ¥9.9 billion a year ago. Operating earnings slid 15.9 percent to ¥60.2 million from ¥71.6 million.
Sales from its Other Sales segment other businesses decreased 29.6 percent to ¥323 million. The segment showed an operating loss of ¥179 million, against a loss of ¥194 million for the same period of the previous year.
For the full year, sales are expected to increase 8.2 percent to ¥240 billion. Net income is expected to reach ¥26.5 billion, up 33.4 percent. The sales forecast remained the same since Shimano’s first-half results but its earnings forecast was reduced from a target of ¥27.5 billion at the half.
