Shimano Inc. reported sales increased 7.1 percent in the first half ended June 30 to ¥174.7 billion. Operating earnings grew 11.9 percent to ¥34.5 billion while net income increased 48 percent to ¥27.7 billion.
In its statement, Shimano said, “During the first half of fiscal year 2018, in Europe, companies’ investment sentiment turned cautious as differences in the standpoints on trade policies of the Trump administration became apparent. However, as domestic demand, including personal consumption, generally maintained an expansion trend, moderate economic expansion continued as a whole. In the U.S., the economy grew steadily due to firm business conditions and increased personal consumption backed by robust labor market. In Japan, although economic recovery showed a temporary slowdown, the economy followed a moderate recovery track as personal consumption picked up. In these circumstances, inspired by our mission—’To 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 increased 6.8 percent from the same period of the previous year to ¥137.9 billion, and operating income increased 9 percent to ¥29.5 billion.
Shimano said of the segment, “In Europe, driven by the stable weather after April and retail sales of completed bicycles of e-bike that have been robust, distributor inventories of bicycles remained at an appropriate level. In North America, retail sales of completed bicycles were on par with an average year, and distributor inventories remained at an appropriate level. In China, retail sales of completed bicycles showed no signs of recovery, and retail sales of low-end and middle-range bicycles continued to be sluggish, but distributor inventories remained at an appropriate level. On the other hand, bike sharing that spread widely in urban areas last year is facing a period of realignment. With regard to the other emerging markets, Southeast Asia as a whole still lacked vigor. In South America, consumption showed signs of slowdown due to the effects of currency depreciation in Brazil and Argentina. Distributor inventories were at an appropriate level both in Southeast Asia and South America. In the Japanese market, retail sales of sports bicycles and community bicycles that had been weak from the beginning of the year continued to be sluggish, although there were some signs of improvement after April. Distributor inventories remained at a slightly high level, though they were in an appropriate range. Under these market conditions, the Shimano Steps E8000 drive unit for E-MTB continued to be well received in the market.”
In the Fishing Tackle segment, sales from this segment increased 8.4 percent from the same period of the previous year to ¥36.6 million, and operating income increased 32.3 percent to ¥5.1 million.
Shimano said about the Fishing Tackle segment, “In the Japanese market, retailers’ New Year sales were strong, but sales stagnated thereafter partly due to cold weather, heavy snowfalls and unseasonable weather in the latter half of the Golden Week holiday period from the end of April to the beginning of May. Overseas, in the North American market, sales were robust, supported by the expansion trend of economy. Sales in Europe during early spring were lackluster compared to a typical year, due to cold weather from the beginning of the year and other factors, and distributor inventories increased in the major markets such as U.K. In Asia, sales in China, South Korea and Southeast Asian markets continued to be robust, led by growing popularity of sports fishing. In Australia, the market was booming and sales regained strength thanks to stable weather after the cyclones that hit the country in March. Under these market conditions, in Japan, new STELLA flagship spinning reel series and new lure-related products such as the Bantam were well received in the market. As a result, sales in Japan exceeded the previous year’s level. Overseas, results were robust because sales in North America, Europe, Asia and Australia exceeded the previous year’s level.”
