Shimano’s latest financial results reflect the challenges still faced by the global economy. In its first half 2011 fiscal year, Shimano reported a modest 2.6% growth in consolidated net sales to reach Yen 107.1 billion (€960 million / US$1,380 million, based on current exchange rates).
Reporting on its first half fiscal 2011 results, Shimano noted a modest recovery track led by the growth of China, India and other emerging economies, despite concern about the financial crisis affecting certain European countries. The strength of the Japanese Yen and the Great East Japan Earthquake of 11 March cast a shadow over the outlook for the Japanese economy, which had been showing some signs of a moderate recovery.
For Shimano’s Bicycle Components division, the company noted that retail sales in Europe had held up, thanks to good weather from late March to May. North America was fairly static year on year. Meanwhile in China the market is expanding ‘owing to a great increase in demand for sports bicycles.’
Shimano noted that 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 reported to be brisk.
In its outlook for the second half of 2011, Shimano reported that Europe and the US are expected to continue on their moderate recovery track. The same holds true for Japan following the aftermath of the earthquake in March; while China and other Asian countries are likely to enjoy continuing robust economic growth.
Cyclone Bicycle Supply in US
Shimano American Corp has meanwhile added Portland, Oregon-based Cyclone Bicycle Supply as a new regional distributor for the US market. The relationship creates improved distribution in a key regional market for Shimano and addresses the specialized needs of customers in and around the Portland area, which, according to Shimano, has become one of the most progressive local bicycle markets in the US.
“This new relationship helps Shimano drive retail success and deliver best in call service, which are two of our key initiatives in the US,” said Lawrence Losinsky, OTC National Sales Manager at Shimano American Corporation. “Cyclone is a trusted distributor and this relationship enables our products to be available through channels that our customers want to buy through.”
