FRIEDRICHSHAFEN, Germany (BRAIN)—Executives at Giant Bicycle should be all smiles tomorrow as Eurobike opens to what should be a record number of visitors.
In data released Wednesday, Giant posted record consolidated sales through the first half of the year of $19.5 billion NT or 422.8 million euros—an increase of 25.1 percent over the same period last year.
An analyst said the record jump in sales is due, in part, to rising orders from Trek as well as increasing global demand for bicycles for exercise and transportation.
Steven Chan, an analyst with KGI Securities in Taiwan, said Trek has
reduced the number of its suppliers and placed more orders with Giant since the second half of 2007.
Chan noted that rising oil prices in the first half of the year helped boost sales as well. Chan said KGI is forecasting Giant’s 2009 consolidated sales and net income to reach $46.3 billion (1.0 billion euros), a 14 percent increase over this year.
Giant has also seen its share of Taiwan sales grow, making it the company’s fastest growing market. Shipments in Taiwan increased to 140,000 units in the first half of this year, up from 100,000 units in the first half of 2007.
“We expect the strong demand for bicycles to continue through the
next few quarters given high oil prices and the increasingly popular
trend of using bicycles for exercise,” Chan said.