OSAKA (BRAIN) — Sales in Shimano's bike-product division were down 12.3% through the first nine months of the year, compared to the same period last year. The weaker dollar relative to Asian currencies impacted Shimano's net income results and the company revised down its net income forecasts for the year because of the exchange rates. The company is sticking with its previous guidance for sales and operating income.
Shimano said bicycle-product inventory held by retailers "started to show signs of progress. However, market inventories of completed bicycles remained high."
It said retail bike sales in Europe were weak due to unfavorable weather in the early spring and that inventory of completed bikes there "remained at a somewhat high level."
In North America, Shimano said, "retail sales softened, although interest in bicycles was firm and adjustments of market inventories of completed bicycles were progressing."
Company-wide, Shimano's revenues through the nine months was 334,879 million yen ($2.185 billion) down 10.8% from the same period in 2023. Operating income for the period was 50,651 million yen and net income was 41,343 million yen, down 30% and 31%, respectively.
In the third quarter, sales were 117,992 million yen, up 5.3% from the quarter last year. Operating income in the quarter was 19,696 million yen (up 8%) while there was net loss for the quarter of 2,361 million yen due to the exchange rates.
Through the first nine months last year, Shimano recorded an extraordinary loss of 17,908 million yen due to its road crankset "free inspection" recall. The company did not earmark any costs from that program this year.
