Japan – Shimano Inc has released financial results for Q3 announcing that during the first nine-months of 2016 net sales from all its business segments fell by 15.75% to JPY 241 billion (US$ 2.32 billion) from JPY 286 billion (US$ 2.75 billion) during the same period in 2015. Net income for all segments dropped by 43.22% to JPY 36 billion (US$ 353 million) from JPY 64 billion (US$ 622 million) in the first nine-months of 2015.
In Shimano's bicycle segment, net sales in the first three quarters of 2016 fell by 18.8% to 192,939 million yen, and operating income decreased 29.4% to 43,236 million yen from the same period of the previous year.
The company's financial statement noted. “In Europe, bad weather in early spring greatly undermined retail sales of completed bicycles, resulting in a continuing high level of distributor inventories. However, thanks to good weather from July onward sales picked up and became brisk, leading to progress in the adjustment of distributor inventories. In North America, retail sales of completed bicycles remained somewhat weaker than in the same period of the previous year. However, distributor inventories of bicycles were adjusted to a lower level than in the same period of the previous year.
In China, although distributor inventories that had persisted at a high level were returning to an appropriate level, there had been no signs of recovery in retail sales of sports bicycles that have been lackluster since the previous year. Bad weather, such as heavy rain, in various regions was among the factors curbing demand. As regards other major emerging markets, retail sales of sports bicycles in Southeast Asia, which had been robust, lost momentum. Sales in South America continued to be soft because of the economic slowdown and weak currencies. In the Japanese market, retail sales of sports bicycles, which had been robust until the previous year, were sluggish and distributor inventories were somewhat high. Retail sales of community bicycles remained weak, continuing from the previous year.”
Shimano's forecasts for the year remain unchanged from its first half 2016 estimates.
