Shimano reported operating income rose 2.1 percent in 2018 as sales improved 3.6 percent.
Revenues rose to ¥348.0 billion from ¥335.8 billion in the same period a year ago, according to Shimano’s statement. Operating profits reached ¥65.7 billion, up from ¥64.4 billion a year ago. Net income reached ¥53.9 billion, a gain of 40.3 percent year-over-year.
Shimano said in a statement, “In Europe, retail sales of completed bicycles, mainly sport E-BIKE, were generally robust partly because the favorable weather continued from April through the summer season, and distributor inventories of bicycles remained relatively low.
“In North America, retail unit sales of completed bicycles fell below the previous year’s level, but shifting to high-end models helped retail sales amount to stay at the same level as the previous year. Distributor inventories remained at an appropriate level.
“In China, retail sales of completed bicycles were below the previous year’s level, but distributor inventories remained in an appropriate range.
“With regard to the other emerging markets, Southeast Asia as a whole lacked vigor although retail sales of completed bicycles showed signs of a gradual recovery in Indonesia. In South America, the Brazilian market eventually bottomed out after consumption had slightly weakened, 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.
“In the Japanese market, retail sales of both sports bicycles and community bicycles remained sluggish owing partly to unseasonable weather conditions, which started with the cold waves at the beginning of the year, as well as natural disasters. Nonetheless, retail sales of E-BIKE as a whole increased, and particularly, sport E-BIKE has gained more attention. Distributor inventories remained at a slightly high level within an appropriate range.
“Under these market conditions, the new SHIMANO 105 Series, which is one of the high-end road bike components, and the new SHIMANO STEPS E7000/E6100 sport E-BIKE components, were well received in the market.”
Shimano said, “In the Japanese market, retail sales were lackluster as a series of natural disasters from the beginning of the year affected the fishing environment and consumer sentiment.
“Overseas, in the North American market, sales remained robust supported by the steadily expanding economy despite the east coast suffering from a hurricane disaster. In Europe, distributor inventories remained at a slightly high level in the UK, one of the major markets, but showed a sign of adjustment to an appropriate level. Australia recorded strong sales since favorable weather continued after cyclones hit the country in March. In Asia, Chinese, South Korean, and Southeast Asian markets witnessed robust sales thanks to growing popularity of sports fishing.
“Under these market conditions, sales in Japan topped the previous year’s level because the new lurerelated products, among other products, were continuously well received in the market. Overseas, sales on the whole exceeded the previous year’s level, especially as Curado DC, the new model of baitcasting reel equipped with a digital control braking system, was highly acclaimed.”
For the current year, Shimano expects revenues to reach ¥365 billion, a gain of 4.9 percent. Operating earnings are expected to climb 11.1 percent to ¥73 billion. Net earnings are expected to be ¥54 billion, up 0.1 percent.