Shimano, Inc. reported sales grew 13.9 percent in the first quarter. Sales grew 13.9 percent in the Bicycle Components segment and 14.1 percent in the Fishing Tackle segment.
Operating income in the quarter rose 16.8 percent in the quarter ended March 31 to ¥38,033 million ($298 mm). Sales improved 13.9 percent to ¥144.0 billion ($1.1 bn)
Ordinary income increased 6.6 percent to ¥39,395 million, and net income attributable to the owners of parent increased 0.5 percent to ¥28,740 million.
Shimano said in its report, “During the first quarter of fiscal year 2022, while signs of recovery from economic stagnation caused by the spread of the Omicron variant began to appear, the outlook for the global economy quickly became uncertain due to rising inflation and Russia’s invasion of Ukraine in late February. Economic sanctions imposed on Russia by Western nations have created global energy supply shortages and a sudden rise in raw material prices, putting downward pressure on personal consumption.
“In Europe, although the economy had been on the upswing, the acceleration of inflation caused by the worsening situation in Ukraine has weighed on consumer sentiment. In the U.S., while there was concern about the negative impact of rising inflation on the economy, personal consumption remained steady.
“In China, personal consumption was sluggish in March due to strict restrictions on activities associated with the zero-COVID strategy. In Japan, personal consumption slowed down, and the economy weakened due to stricter COVID-19 measures put in place in response to the spread of the Omicron variant. In this environment, interest in and demand for bicycles and fishing continued to be high despite supply chain disruptions and tight logistics.”
Bicycle Components Sales Expand 13.9 Percent
In the Bicycle Components segment, net sales increased 13.9 percent from the same period of the previous year to ¥118,176 million, and operating income increased 17.0 percent to ¥32,455 million.
Shimano said, “The global cycling boom showed signs of cooling down, with market inventories of entry-class and middle-class bicycles approaching appropriate levels, while demand centering around high-end class bicycles remained high.
“In the European market, demand for bicycles and bicycle-related products remained firm as governments continued their policies to promote bicycles in response to growing environmental awareness. While demand for e-bikes remained strong, market inventories of entry-level and middle-class bicycles approached appropriate levels.
“In the North American market, demand for bicycles remained firm and market inventories, centering around entry-class and middle-class bicycles recovered to appropriate levels.
“In the Asian and South and Central American markets, the cycling boom cooled off, and market inventories of entry-class bicycles remained at a slightly higher level. In the Japanese market, while market inventories of road bikes remained at a low level due to steady demand for sport bikes, retail sales of community bicycles were sluggish, resulting in market inventories remaining at a higher level.
“Under these market conditions, order-taking was brisk for a wide range of products, including the high-end models for road bikes, Dura-Ace and Ultegra and sport E-Bike components, Shimano Steps series.”
Fishing Tackle Revenues Jump 14.1 Percent
In its fishing tackle segment, net sales increased 14.1 percent from the same period of the previous year to ¥25,767 million, and operating income increased 14.8 percent to ¥5,564 million.
Shimano said, “Continuing from the previous year, fishing was welcomed by a wide range of users, and the fishing tackle market thrived and maintained high demand around the world.
“In the Japanese market, while there were signs of a lull in the fishing boom, high demand for various fishing types continued from the previous year, and sales remained robust. Overseas, in the North American market, while the popularity of fishing began to cool down, demand for fishing tackle remained strong, and sales remained favorable.
“In the European market, sales remained strong despite the impact that the situation in Ukraine and rising inflation have had on consumer sentiment. In the Asian market, demand for fishing tackle, mainly in the Chinese market, remained strong, and sales were solid. In the Australian market, although sales stagnated in some areas due to heavy rain damage, sales were solid in the Australian market as a whole, partly due to active consumer behavior.
“Under these market conditions, various products, including spinning reels Stella and Aero 3 Technium MGS as well as the rod EXPRIDE, were well-received in the market.”
Shimano maintained its forecast for the first half of 2022 and the full year. Sales are expected to reach ¥293,200 million for the first half, up 10.8 percent. Operating income is expected to be ¥81,300 million, up 16.3 percent.
For the full year of 2022, sales are expected to reach ¥580,000 million, a gain of 6.1 percent. Operating income is expected to reach ¥161,000 million, up 8.6 percent.
