OSAKA, Japan (BRAIN) — In its bicycle-related business Shimano Inc. saw a 4.6% increase in sales in 2019 compared to 2018 and a 1% increase in operating income in the year.
The company said sales were solid in Europe and North America and even the years'-long downward trend in China has stopped.
Annual sales in the bike division were 290,038 million yen ($2.64 billion); operating income was 57,850 million yen.
Across all its divisions, including bike, fishing and other, Shimano's sales were up 4.4% to 363,230 million yen.
For 2020, Shimano forecast a 2.4% increase in sales across its divisions, to 372,000 million yen. In the bike division, it's forecasting sales of 296,500 million yen, up 2.2% from 2019.
"There are concerns that the U.S.-China trade issues and heightened geopolitical risks in the Middle East will impact the global economy," Shimano said about its 2020 forecast.
"In addition, the economy in Europe threatens to decelerate due to the Brexit turmoil. In the U.S., expanded personal consumption is expected to lead a continued economic recovery, while there exists a possibility that the economic climate will be affected by how the presidential election unfolds. In Japan, the pace of economic recovery is estimated to be quite moderate due to a reaction to the rush demand before the consumption tax increase, and slowdowns in employment and income improvements."
Shimano's stock price fell nearly 6% overnight Wednesday after the earnings were announced. The stock closed at $16.03 Wednesday and opened at $15.10 Thursday. It closed at $15.08 Thursday afternoon.
