OSAKA, Japan (BRAIN)—Shimano’s sales hit $2.6 billion last year (213.6 billion Yen), with the bicycle division contributing $2.1 billion (169.4 billion Yen) in sales, or 79 percent of total sales. Shimano’s net income doubled to $232.3 million (19.1 billion Yen).
Shimano’s bicycle business drove most of the company’s gains, with component sales climbing 17 percent over 2009 even though the Yen remained strong. The company attributed much of its sales success over the year to its customers building up inventory after selling it down during 2009. The company also said sales for its new component introductions—105, Deore XT, SLX and XTR—were strong.
However, the company noted that while bicycle sales into its traditional markets of Europe and North America were firm, sales into China and Asia—apart from Japan—grew strongly.
Sales of Shimano’s fishing products grew six percent to $526.0 million (169.4 billion Yen), and like its bicycle business, the growth was mostly in Asia. The strong Yen, and the Deepwater Horizon oil spill into the Gulf of Mexico impacted fishing sales in the North American market. Sales in its third business division, mostly cold forgings, fell 32 percent.
Looking to this year, Shimano predicts a modest three percent sales growth to $2.67 billion (220,000 billion Yen), but it expects its net income to grow 15 percent. Most 2010 sales in Europe and North America were due to Shimano’s customers rebuilding inventory, something that will not be a factor this year. And the company anticipates poor economic conditions in Europe and North America will hamper sales growth there. Shimano expects its Asian sales will continue to see strong growth.