OSAKA, Japan (BRAIN)—A slow bike market took its toll on Shimano as the company saw its sales tumble to $1.47 billion (134.44 billion Yen) through September, from $1.87 billion (170.6 billion Yen) last year. The company’s income fell to $149.98 million (13.68 billion Yen) from $307.38 million (28.03 billion Yen).
Shimano bicycle component sales were $1.13 billion (102.87 billion Yen) through the third quarter, compared with $1.46 billion (133.5 billion Yen) in 2008, a fall of 23 percent. However, Shimano had a stellar 2008, as did most in the bike industry and its ’08 third quarter bicycle component sales were 19 percent over 2007. The company’s sales so far this year track closer to its 2007 sales.
Shimano contributes its falling sales to sluggish sales of mid-range and high-end bicycles in North America, and inventory adjustment of retailers over the same period.
However, the slowdown in business is not coming from Bicycle Product Supplier Association (BPSA) members, who increased bike purchases from Asian builders by 166,341 units through June this year, the last quarter reported by the BPSA. This represents a sizable increase in North American bike orders through June.
Shimano reports its direct sales to North America, aftermarket and OEM sales, were up 26 percent to $188.12 million (17.16 billion Yen) from $149.13 million last year (13.600 billion Yen).
Shimano’s European sales, its single largest market, have remained steady though the company is experiencing a slowdown in future orders. Direct sales to Europe were $212.2 million (19.352 billion Yen), compared with $265.47 million (24.21 billion Yen) last year, a fall of 20 percent.
But it was Shimano’s sales to Asian bike builders that took the largest hit, falling 32 percent to $515.79 million (47.04 billion Yen) from $757.35 (69.07 billion Yen) in 2008.
Shimano’s fishing sales, which have been falling for the past two years, were down again to $335.39 million (30.59 billion Yen) from $381.3 million (34.77 billion Yen) last year, a fall of 12 percent. Sales in its other business units also have been falling for a few years and were off an additional 58 percent this year, to $10.79 million (984 million Yen) over the first nine months, down from $25.55 (2.33 billion Yen) last year.