Shimano Inc’s results for the first quarter ended 31 March 2009 show the company generating a net profit gain of 2.9% to Yen 5.5 billion (€42 million / US$58 million). This is despite an 18.9% fall in revenue to Yen 45.1 billion (€348 million / US$473 million).
For the full year ending 31 December 2009, Shimano is projecting net profit to be down 12.5% to reach Yen 17.5 billion (€135 million / US$184 million). Annual revenue for 2009 is also projected to be down: -4.9% to Yen 195 billion (€1.5 billion / US$2 billion).
The current economic climate is clearly taking its toll on Shimano. While cost savings bolstered the leisure giant’s profit in the first quarter of 2009, tough trading conditions are expected to severely impact the company’s full year performance.
Year on year, Shimano has been able to grow revenues. Yet, in early 2009, the company reaffirmed the challenges faced this year.
In 2008 Shimano reported turnover of US$2.59 billion (€2.05 billion) up 11% year on year. Net income after costs for 2008 reached US$277 million (€220 million), up an impressive 26% on 2007. Bicycle component sales continue to dominate Shimano’s business at US$2.04 billion, or 79% of revenue. Fishing equipment, and a small snow gear and golf business in Japan, account for the remainder.
