TAICHUNG, Taiwan (BRAIN) — It's been a tough year so far for Giant Manufacturing, and its third-quarter results have shown little improvement in its global position as the world's leading bicycle maker.
But despite a 5.3 percent decline in revenue since January, the company is planning no changes in its overall strategy, Giant officials said.
First, the numbers: Overall revenue through the third quarter ended in September was $1.45 billion, compared with $1.46 billion year-to-date in 2016. Profit before taxes was $87.5 million, down 22.2 percent from $106.9 million, while after-tax profits fell 20.3 percent to $63.3 million.
However, Giant has seen a mild upsurge recently in its stock price, trading at $5.27 per share on the Taiwan Stock Exchange. Still, that's off some 22 percent since January, when it was trading at $6.79 per share.
Most of Giant's woes can be pinned to its position in China. "China's market performance remains soft as it continues to be affected by a slow economy and bike share programs," officials said in a statement.
The company has significant investments in retail stores and manufacturing in China, but the nation's fascination with bike share has robbed sales from its retail partners, particularly for midrange to high-end bikes. But help may be on the way as a variety of Chinese cities crackdown on what some refer to as a bubble economy in bike sharing programs.
"Nevertheless, Giant's strategy remains unchanged as we continue to strengthen our mid- to high-level product portfolio, improve distribution channel health, and organize cycling activities and events," the company stated.
Bolstering Giant's confidence in the future has been a strong performance in European markets thanks to the popularity of e-bikes and more favorable currency rates. "E-bikes continue to be the key growing segment in Europe, and this trend has continued through the first half of this year," the company stated.
As for the U.S. market, Giant officials are upbeat about the market, noting that it has experienced healthy growth and its July introduction of new models as well as its expanded Liv line are supporting that growth.
