OSAKA, Japan (BRAIN)—Shimano posted a 2.2 percent increase in sales in its bike division during the first quarter compared to the same period last year. In its quarterly financial statement, the company said sales of bicycle components totaled $490.5 million (40.8 billion yen) during the first three months, while operating income increased 2.9 percent to $85.3 million (7.1 billion yen).
Overall, Shimano posted sales of $611.9 million (50.9 billion yen) for the quarter that ended March 31, a gain of 1 percent over last year. Net income dropped 57 percent to $26.4 million (2.2 billion yen).
Japan’s March 11 earthquake impacted sales into that country, especially the Tohoku region, in the first quarter. And the company expects the turmoil in the Japanese economy caused by the earthquake to continue. It also noted that rapid changes in exchange rates makes business difficult for Japanese exporters.
Noting a slow start to the European market, Shimano saw sales pick up in February and March. U.S. sales have been strong since January, while inventory levels held by suppliers are at normal levels.
Looking ahead, Shimano forecasted sales into Asian economies to increase in spite of the troubled Japanese economy. However, sales into Europe and North America remain uncertain.
Shimano revised its forecast slightly. It expects its overall sales to hit $2.64 billion (220 billion yen) this year, while it revised its net income down slightly to $240.4 million (20 billion yen) from its earlier estimate of $264.5 million (22 billion yen).