Having achieved double digit sales growth for the full year of 2012, the first quarter of 2013 has slowed down somewhat for Shimano Inc. Reflecting the pace of growth in both developed and emerging markets in the first three months of 2013, Shimano saw consolidated net sales across all business units – bicycle components, fishing tackle and others – rise 1.3% to ¥63.3 billion (US$639 million).
Shimano’s bicycle components division saw a slightly higher rate of growth in Q1 2013. Here, Shimano reported sales of ¥51.1 billion (US$515 million) – up 2.7% year on year. Although, operating income for Shimano’s bike business decreased 6.2% to ¥9.5 billion (US$96 million).
A lacklustre retail situation in Europe, compounded by extremely cold weather in January to March 2013 and the sluggish economy combined to put Shimano’s sales on ice in Europe. In the US, retail sales were at their usual levels for winter – although were less buoyant than Q1 2012 when there was a boost from milder weather.
A harsh winter in Japan also chilled Shimano’s sales performance in its home market.
In its forecast for the full year to December 2013, Shimano pointed to continuing uncertainties in Europe – notably the financial crisis in Cyprus and political uncertainty in Italy. Concerns were raised about the US economy, following tax hikes and cuts in federal spending. In Japan, there is some optimism thanks to a range of new economic policies aimed at easing monetary pressures.
For the full year of 2013, Shimano forecasts net income of ¥29.5 billion (US$298 million) across all business units. If achieved, this would result in growth of 7.3% year on year.
