Shimano Inc. reported sales declined 2.0 percent in the first half ended June 30 to ¥163.0 billion. Operating earnings slid 9.8 percent to ¥30.8 billion while net income declined 18.3 percent to ¥18.7 billion.
In its statement, Shimano said, “During the first half of fiscal year 2017, the European economies were on a recovery trajectory as business sentiment picked up in light of the recovery of exports and personal consumption was firm. In the U.S., while the trend of policies of the Trump administration attracted attention, moderate economic expansion continued, driven by the growth of personal consumption thanks to the improvement in the labor market. In Japan, a robust labor market supported recovery of personal consumption and the economy remained on a recovery track. However, a full-fledged recovery did not materialize due to concerns about uncertain political and economic prospects overseas. In these circumstances, inspired by our mission — ‘To create new value and promote health and happiness through the enjoyment of nature and the world around us’ — the Shimano Group sought to attract consumers with a stream of captivating products designed to enrich the experience of cyclists and anglers around the world, and moreover attuned to the contemporary emphasis on well-being and the environment.”
In its Bicycle Components segments, sales decreased 2.7 percent from the same period of the previous year to ¥129.1 billion, and operating income decreased 11.5 percent to ¥27.1 billion.
Shimano said of the segment, “In Europe, although the spring season was blessed with good weather until Easter in mid-April, the weather became unsettled and continued until early May. Retail sales of completed bicycles were at the expected level for a typical first half, and distributor inventories of bicycles in Europe remained at an appropriate level. In North America, retail sales of completed bicycles were approximately the same as the previous year’s level and distributor inventories remained somewhat low. In China, the sharp growth in bike sharing hampered a recovery of retail sales of completed bicycles, which had been lackluster since 2015. Although retail sales of low-end bicycles were particularly weak, distributor inventories were at an appropriate level. As regards other emerging markets, retail sales in Southeast Asia and South America continued to lack vigor and remained at the same level as the previous year, but distributor inventories were at an appropriate level. In the Japanese market, retail sales of both sports bicycles and community bicycles were lackluster, but distributor inventories remained at an appropriate level. In these market conditions, the DEORE mountain bike components released in May 2017 and the ULTEGRA road bike components released in June 2017 were well received in the market.”
In the Fishing Tackle segment, sales from this segment increased 0.6 percent from the same period of the previous year to 33,799 million yen, and operating income increased 4.7 percent to 3,831 million yen.
Shimano said about the Fishing Tackle segment, “Year sales and stable weather around the Golden Week holiday period from the end of April to the beginning of May. Overseas, in Asia, while sales decreased in Southeast Asia and Taiwan affected by slowing economic activity, sales in China and South Korea on the other hand continued to be robust since the previous year. In Europe, the market somewhat slowed owing to unstable weather in contrast to good weather during early spring. And while North America had generally good weather, consumer sentiment was rather weak. In Australia, consumer sentiment lacked vigor despite more favorable weather and improvement in distributor inventories. In these market conditions, sales of lure-related products were buoyant in Japan. In addition, certain models for the second half of fiscal year 2017, which were released earlier than originally scheduled, were well received in the market. Sales in Japan were virtually unchanged from the previous year. Overseas, although sales in North America lacked vigor because of the market conditions, sales of carp reels and other products were brisk in Europe and sales of lure-related products continued to expand in China and South Korea. Thus, overseas sales exceeded the previous year’s level.”
Photo courtesy Shimano