Shimano’s third quarter results show slight year-on-year sales growth

In the first nine months of 2017 Shimano has achieved a 1.4% year-on-year sales growth within its bike division, rising to $1.7 billion. Operating income did however see a near 5% downturn.

Across the globe Shimano tended to describe bicycle trade as flat. In Europe the results suggests sales were at “the same level as the prior year”, while in North America the components giant described distributor inventories as low, while bike sales have stagnated. Meanwhile, in China, Shimano again pointed to the drop off in low-end bikes sales – previously attributed to the rise and rise of bike sharing – as a reason for decreased sales.

The flatspot, believes Shimano, will hit an incline again soon. The firm placed high hopes on the diversification of bicycle types and the European trend toward e-bike adoption as cause for hope.

Sales of both the Deore mountain bike components released in May 2017 and the Ultegra road bike components released in June 2017 remained robust, and the additional Ultegra Di2 (electronic shifting system) and disc brakes released in August 2017 were well received in the market.

Shimano has now issued a slightly revised down income forecast for the group as a result of the depreciation of the U.S. Dollar against Asian currencies.

During the first quarter of fiscal year 2017, Shimano Europe Bike Holding B.V., which was a consolidated subsidiary, merged with Shimano Europe B.V. and Shimano Europe Retail Division B.V., which were consolidated subsidiaries. The former Shimano Europe Bike Holding B.V. remained as the surviving company and changed its name to Shimano Europe B.V. As a result, the former Shimano Europe B.V. and the former Shimano Europe Retail Division B.V. were excluded from the scope of consolidation.

The full report can be found here.