Shimano reported a 13 percent increase in net sales to ¥182.7 billion (€1.81bn-$2.30bn) for the first nine months ended Sept. 30. Net income reached ¥20.5 billion (€202.8m-$257.8m), representing an increase of 79.3 percent from a year ago. Operating profit improved to ¥31.8 billion (€314.6m-$400.0m), compared with ¥22.7 billion in the year-earlier period.
In the third quarter alone, sales improved by 17.6 percent to ¥64.1 billion (€634.2m-$806.2m), while net profit climbed by 17.8 percent to ¥5.3 billion (€52.4m-$66.7m). Sales of bicycle components improved by 8.3 percent in the quarter to ¥48.2 billion (€476.9m-$606.2m), while operating earnings rose to ¥9.5 billion (€94.0m-$119.5m) against ¥6.9 billion a year earlier.
For the full nine-month period, sales of bike parts grew by 13.6 percent to ¥146.2 billion (€1.45bn-$1.84bn). Operating income increased by 40.6 percent for the segment to ¥30 billion (€296.8m-$377.3m).
In Europe, retail sales of Shimano's bicycle components virtually kept the same levels as a year ago, thanks to warm weather conditions from late July onward. In North America, the bike segment continued to exceed the previous year's levels, aided by stable spring weather. In China, demand for sports bicycles continued to rise, although sales are expected to slow down toward the end of 2012, in view of the Chinese economic situation. Demand for sports bicycles rose in Southeast Asia and South America. It was weak in Japan due to unsettled weather conditions, but Shimano's deliveries to the domestic market went largely according to plan.
During the third quarter, Shimano introduced the new Dura Ace top-of-the-line road bike components and the Deore LX trekking bike components, which spurred a high volume of orders. The models that were newly introduced in the second quarter, including the SLX and Sora bike components and the Tourney A070, continued to sell well.
In the fishing tackle segment, sales rose by 11.6 percent in the nine months to ¥36.2 billion (€358.1m-$455.3m), generating an increase in operating income of 27 percent to ¥2.2 billion (€21.8m-$27.7m). Sales weakened in North America due to extreme weather conditions, marked by heat waves and hurricanes, but total sales in overseas markets increased, favored by robust sales in Oceania. Sales remained brisk in the Japanese market, despite the uncertain market environment. In Europe, sales were affected by the economic downturn. Breaking out third-quarter results, sales in the fishing tackle segment grew by 10.1 percent from a year ago to ¥10.9 billion (€107.8m-$137.1m), while operating earnings slid by 15.9 percent to ¥60.2 million (€595,590-$757,150).
For the full year ending Dec. 31, the company has revised its guidance, predicting that its sales will grow by 8.2 percent to ¥240 billion (€2.37bn-$3.02bn), while net income should reach ¥26.5 billion (€262.2m-$333.3m), representing a 33.4 percent increase.