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Operating income drop in first half of 2019 for Shimano

Shimano 105 cassette

For the first half of fiscal 2019, Shimano’s bicycle components division saw net sales increase 4.1% to ¥143.6 billion (US$1.3 billion). Although, with increased operating expenses, the company saw a 3.0% decrease in operating income to ¥28.6 billion (US$263.6 million).

Shimano cited varying factors across its key markets of Europe, North America, China, Japan and emerging markets such as South America…

  • In Europe, good weather conditions from the beginning of spring supported favourable retail sales of completed bicycles, mainly sport e-bikes, and distributor inventories of bicycles in Europe remained at an appropriate level.
  • In North America, although total retail unit sales of completed bicycles had been sluggish from the start of the year, the sales amount remained at the same level as the previous year due to improved weather from the latter half of March and also owing to a favourable sales environment, mainly for high-end bicycles. Distributor inventories remained at an appropriate level.
  • In China, retail sales of completed bicycles showed no clear signs of recovery, and sales continued to lack vigour. Meanwhile, distributor inventories remained at an appropriate level.
  • In the Japanese market, despite overall good weather conditions, sales of high-end sports bicycles were sluggish. Meanwhile, as the shift to sports-type cross bike and e-bikes for commuting to work and school further progressed, unit sales decreased, but sales unit prices increased. Distributor inventories were slightly high.
  • With regard to the other emerging markets, in South America, the Brazilian market continued to recover, while the Argentine market remained stagnant due to the effects of currency depreciation. Distributor inventories remained at an appropriate level except for the Argentine market.

Going forwards, for its full-year consolidated business, Shimano has revised its forecasts down. This is due to expected increases in expenses for new product launches and increased production costs as well as depreciation in Asian currencies.



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