Shimano Inc has reported that consolidated net sales increased 10.9% for the full year of 2012. This follows a 13.1% year on year rise reported in the first nine months of 2012.
Focusing specifically on its bicycle components division, Shimano reported sales of ¥198.2 billion (US$2.1 billion) – up 11.8% year on year. Operating income for Shimano’s bike business increased 30.2% to ¥39 billion (US$418 million).
Shimano noted that sales in Europe, a major market for the company, remained at virtually the same level as in the 2011 period. This is even with the unsettled weather across the region in the first half of the year. North American sales continued to be above the previous year’s level, thanks in part to a mild winter and stable spring weather.
Emerging markets continued to deliver growth. In China, demand for sports bicycles remained high. However, in its nine month fiscal report, released in November 2012, Shimano stated that, in China, ‘sales could slow toward the end of 2012 as the Chinese economy may have peaked.’
Commenting on the full year of 2012, the company noted that ‘The market for sports bicycles in China, having surged in the previous year, somewhat lost momentum but continued to grow at a stable pace. As a result… sales exceeded the previous year’s level.’
In South East Asia and South America, Shimano reported that overall demand for sports bicycles grew despite unsettled weather and a less buoyant economy in key markets, such as Indonesia. Retail sales in Japan also remained ‘lacklustre’.
In its forecast for 2013, Shimano cited the sovereign debt crisis in Europe, uncertainties about fiscal policies in the US and the knock-on effect of the global economic downturn on China and the ASEAN countries. The company expects these uncertain economic conditions to continue. With this in mind, Shimano Group is ‘endeavouring to further enhance management efficiency… [and] will take the lead in the creation of [a] new cycling culture.’
