OSAKA, Japan (BRAIN) — Shimano saw a 4 percent increase in net sales in its bicycle division last year, while operating income in the segment was nearly flat, down 0.8 percent, the company announced Tuesday. The component giant said sales of its Dura-Ace Di2 group and STEPS E8000 e-bike drive unit were "robust" and that its Ultegra Di2 and the disc brakes it introduced in August were also well received. Bike-related sales were 270,206 million yen ($2.5 billion).
Shimano indicated that in North America, retail sales of complete bikes "lacked vigor" in 2017 and were about flat with 2016. However, the company said North American distributor inventory levels were lower than in the prior year, which presumably helped Shimano's sell-in to the distributor channel. The company does not release specific figures for its regional sales.
European sales started out the year sluggish but improved in the second half, eventually hitting the same level as in 2016, Shimano said.
In China, bike sales were below 2016, although Shimano said distributor inventory levels were appropriate. The company had similar things to say about its performance in Japan, Southeast Asia and South America, with no particular region turning in exceptional results.
Shimano's net sales across all divisions were up 4 percent to 335.8 billion yen, while total operating income was down 0.3 percent to 64.4 billion yen. Its fishing tackle division saw a sales increase of 3.3 percent last year, with an operating income increase of 2.5 percent. Fishing sales are about 20 percent of Shimano's business.
The company forecast a 6.3 percent increase in net sales in the first half of 2018 and a 4.2 percent increase in the full year.
"In the U.S., the economy will be upheld by a better corporate investment sentiment resulting from tax reforms and by recovery in personal consumption on the back of a good employment environment, but concerns exist that the increasing risk of global conflict and confusion in domestic politics will pour cold water on the economy," Shimano said.
