Shimano finished 2011 with a 3.8 percent increase in sales to ¥221.8 billion (€2.15bn-$2.83bn), while the operating income dropped by 3.1 percent to ¥31.7 billion (€307.8m-$404.1m). The ordinary income surged by 14.2 percent to ¥31.7 billion and the net income was up by 3.9 percent to ¥19.9 billion (€193.2m-$253.7m). The results are roughly in line with the company's forecasts released with its third-quarter results on Oct. 26, which indicated full-year sales at ¥221.0 billion, operating profits at ¥31.0 billion and net profit at ¥20.0 billion.
In 2012, the company expects to book a 3.7 percent increase in sales to ¥230.0 billion (€2.23bn-$2.93bn), a 10.3 percent rise in operating income to ¥35.0 billion (€339.9m-$446.2m) and a 20.8 percent jump in net income to ¥24.0 billion (€233.1m-$305.9m). But this year's results will be inflated by the change of the fiscal year for 27 subsidiaries from Nov. 30 to Dec. 31, resulting in a 13-month year. The shift will add ¥2.8 billion (€27.2m-$35.7m) in sales and ¥1.6 billion (€15.5m-$20.4m) in operating income.
In 2011, sales of bicycle components rose by 4.7 percent to ¥177.3 billion (€1.72bn-$2.26bn), while operating income decreased by 3.4 percent to ¥30.0 billion (€291.3m-$382.4m). In Europe and in North America, retail sales were resilient and remained virtually unchanged compared with the previous year. In China, the market was buoyant and sales of sports bicycles were significantly higher than in 2010. In the fourth quarter, the order intake was upbeat, spurred by anticipation of further demand growth in China for sports bicycles. It added that inventories with its distributors were at normal levels.
This year, the bicycle component business is forecast to generate sales of ¥184.5 billion (€1.79bn-$2.35bn), with ¥91.5 billion generated in the first half and ¥93.0 billion in the second half. Japanese sales will reach ¥7.5 billion (€72.8m-$95.6m) in the full year and foreign sales ¥177.0 billion (€1.72bn-$2.26bn).
The fishing tackle business increased sales by 1.4 percent to ¥43.9 billion (€426.3m-$559.6m). Operating income rose by 8.6 percent to ¥2.1 billion (€20.4m-$26.8m). In Japan, the company did not register the recovery it expected after the 8.9-magnitude earthquake that hit the country on March 11 and the subsequent nuclear disaster. Foreign sales were affected by natural disasters, the debt crisis in Europe and the appreciation of the yen. Nevertheless, sales remained buoyant in Asia-Pacific.
In 2012, sales of fishing tackle are seen reaching ¥45.0 billion (€437.0m-$573.7m), with ¥23.2 billion achieved in the first half and ¥21.8 billion in the second.
Sales from other businesses decreased by 35.6 percent to ¥578 million (€5.6m-$7.4m) and their combined operating losses widened to ¥363 million (€3.5m-$4.6m) from ¥228 million. Revenues from these activities will continue to decline in 2012, reaching an expected ¥500 million (€4.9m-$6.4m).
