OSAKA, Japan (BRAIN)—Sales in Shimano’s bicycle components segment increased 3.3 percent for the first six months of the year as the world economy remained on a modest recovery track, the company said in an earnings report released Wednesday.
Revenue from bike parts rose from 81.6 billion yen ($1 billion) to 84.2 billion yen ($1.04 billion) for the period ending June 30, 2011. Operating income decreased 10.1 percent to 14.3 billion yen ($177.5 million).
In Europe, retail sales were buoyant thanks to good weather from late March to May in most regions, the report said. In North America, retail sales were about on par compared with the same time period last year even though spring weather arrived later than in the previous year and the weather tended to be unstable. The market in China is expanding creating a great increase in demand for sport bicycles.
“In these circumstances, inventories of bicycles held by distributors remained at normal levels worldwide, a situation continuing from the previous fiscal year. Shipments from Shimano proceeded almost as planned and sales of Deore XT mountain bike components and Tiagra road bike components and other new products were brisk,” according to the report.
Companywide, Shimano’s sales were up 2.6 percent percent from 104.4 billion yen ($1.29 billion) to 107.1 billion yen ($1.33 billion) for the first half of this year. Operating income fell 11.8 percent to 15.2 billion yen ($188.7 million), and net income decreased 28.2 percent to 6.9 billion yen ($85.6 million).
During the first half of the year, the global economy continued its recovery led by growth in China, India and other emerging economies, despite concern about the financial crisis affecting certain European countries.
“In Japan, however, despite indications of an upturn in the economy, notably the rise in exports underpinned by growing demand in emerging economies centering on Asia, a decisive recovery of the Japanese economy did not materialize, partly because of the strength of the yen. The Great East Japan Earthquake of March 11 cast a shadow over the outlook for the Japanese economy, which had been showing signs of a moderate recovery.”
Given these circumstances, Shimano strove to vitalize the market with a stream of captivating products.