Shimano trimmed its sales and profit forecast for the full year as it suffered from the weakness of the American and European economies in the last quarter, as well as the appreciation of the yen. The Japanese company still managed to lift its sales by 3.7 percent to ¥161,602 (€1,503m-$2,069m) for the first nine months of the year.
When it comes to bicycle components, Shimano enjoyed the continued growth of the Chinese market for sports bicycles but it was affected by unsettled weather in June and July in the U.S. and European markets. Shimano's sales in this category increased by 4.5 percent to ¥128,712 million (€1,197m-$1,648m) for the nine months, but its operating income retreated by 11.6 percent to ¥21,203 million (€197.2m-$271.5m).
As for fishing tackle, Shimano's sales in this category were badly hurt by the earthquake in Japan earlier this year, along with sagging consumer confidence. Other markets in Asia and Oceania performed better, lifting the company's entire international sales of fishing tackle.
Taken all together, Shimano's sales in this category inched up by 1.3 percent to ¥32,431 million (€301.7m-$415.2m) and operating income crawled up by 0.3 percent to ¥1,731 million (€16.1m-$22.2m).
Then again, Shimano suffered a decline of 34.6 percent in the turnover of its other business unit, down to ¥458 million (€4.3m-$5.9m), and it suffered an operating loss of ¥194 million (€1.8m-$2.5m). The company ended the nine months with operating income of ¥22,740 million (€211.5m-$291.1m), down by 11.0 percent, and its net income fell by 20.8 percent to ¥11,420 million (€106.2m-$146.2m).
Shimano said there was not much room for optimism for the prospects of the Japanese economy, as the specter of recession continued to haunt international economies and it feared that the strong yen would persist. The company is trying to retaliate by coming up with compelling products and making its production and delivery more efficient.
Shimano now predicts that its sales will reach ¥221,000 million (€2,056m-$2,829m) and its operating income will end the year at ¥31,500 million (€293.0m-$403.3m). Three months ago Shimano had forecast that its full-year sales would approach ¥225,000 million and that its operating income would reach about ¥34,000 million.