OSAKA, Japan (BRAIN)—Shimano Inc. is slashing its full year profit forecast as U.S. and European consumers cut back purchases on mid- to high-end bicycles and fishing gear, according to Bloomberg News.
Shimano’s stock price fell 6.9 percent to 3,660 yen ($40.38) when the company announced Monday that its earlier profit forecasts would fail to meet expectations.
The company cut its full-year forecast 28 percent to 11 billion yen ($121.4 million). This is the third downward revision in Shimano’s forecast this year.
The announcement came as the company reported that net income from the first nine months of the year ending September 30 had fallen 58 percent when compared to the same period a year ago. Net income fell from 18.6 billion yen in 2008 to 7.9 billion yen or $86 million this year.
While Shimano supplies the bicycle industry with components to meet almost all price points, mid- to high-end bicycles spec’d with Ultegra, Dura-Ace, XT and XTR drive trains have taken the brunt of the consumer pullback, particularly in the U.S. market.
Many OE suppliers, reacting late last year to the economy’s downturn, sharply trimmed later orders for 2010 bikes. Bicycle imports into the U.S. market through August also fell 15 percent in overall units and 9 percent in value, according to the U.S. Commerce Department.