OSAKA, Japan (BRAIN)—Shimano’s first-quarter 2008 revenues jumped almost 16 percent over those from the same period last year, to $532.7 million, and net income was up by nearly the same percentage, to $51.3 million.
The publicly traded components giant attributed most of the gain to its bicycle division, which boasted a 22 percent increase in sales, to $414.7 million, and a 30 percent increase in operating income to $80 million.
“Reflecting the growing interest in health and the environment worldwide, the values represented by bicycles have been recognized anew and demand for bicycles has been rising, spurring increased sales,” the company stated in its quarterly financial summary.
“While sales of medium- and high-grade components for mountain bikes and road bikes grew in Europe, sales of components for medium-grade models rose in other markets,” the company added.
Shimano’s fishing tackle segment’s sales were down 1.2 percent to $109.7 million, but its operating income edged upward by 1.9 percent to $4.3 million. Shimano’s other operations, including its cold-forging, were up by 1.5 percent to $8.4 million but posted an operating loss of about $38,000, compared with a $318,000 loss in first-quarter 2007.
The company is forecasting that the bicycle segment will continue to drive revenue gains for full-year 2008 and projects a 6 percent increase in net sales, to $2.16 billion, and a 20.6 percent increase in net income to $230.3 million.
Note: all dollar figures are based on yen-dollar exchange rates in effect on May 19, 2008.