Shimano Group has reported, for the first half of its fiscal year 2015, a net sales increase of 25.8% year on year to ¥196,585 million (US$1.6 billion). Operating income increased 49.2% to ¥45,356 million, and net income increased 75.8% to ¥36,532 million.
Within Shimano’s bike components division (its largest operating unit), Europe and North America ‘experienced virtually no decline in demand despite somewhat unsettled weather during the first half.’ Reflecting growing interest in the use of bicycles in society, retail sales in the first half were brisk.
As a result, distributor inventories in Europe remained ‘at the appropriate level and those in the US were slightly lower than the appropriate level.’ In Japan, whereas retail sales of sports bicycles continued to be robust, retail sales of community bicycles have been weak, greatly affected by the impact of price increases resulting from the depreciation of the Yen, and distributor inventories of community bicycles remained somewhat high.
While sales of sports bicycles in emerging markets have been maintaining robust growth, retail sales of sports bicycles in China, which had been the leading driver of demand for sports bicycles, in the first half decreased from the level of the same period of the previous year. However, Shimano added that distributor inventories of sports bicycles in China remained in the appropriate range.
In these market conditions, full model changes of DEORE XT and ACERA mountain bike components and Tiagra road bike components were well received and order-taking was brisk. In addition, Shimano products remained relatively affordable because of the entrenched depreciation of the Yen.
Thus, segment sales for the first half exceeded the forecast. As a result, net sales from this segment increased 29.7% from the same period of the previous year to ¥163,002 million, and operating income increased 51.8% to ¥42,759 million.
At a macro-economic level, Shimano noted that the moderate recovery of European economies generally continued as the tempo of recovery of exports quickened, spurred by the depreciation of the Euro. However, with the rekindling of the Greek debt crisis, personal consumption tended to slow.
‘In the US, corporate earnings maintained moderate growth as the halting of both dollar appreciation and the decline in oil prices was positively received while employment continued to trend upward. In Japan, personal consumption continued to recover at a modest pace, although it lacked vigour.’
