OSAKA, Japan (BRAIN) — Robust European e-bike sales and an average year for bike sales in North America led to a 6.8 percent sales increase in Shimano's bike division in the first half of 2018, the company said Monday.
Bike-related sales were 137.9 billion yen ($1.24 billion) in the half. Operating income in the half year was up 9.0 percent to 29,506 million yen.
"In Europe, driven by the stable weather after April and retail sales of completed bicycles of e-bike that have been robust, distributor inventories of bicycles remained at an appropriate level," the company said. "In North America, retail sales of completed bicycles were on par with an average year, and distributor inventories remained at an appropriate level."
The company said sales of completed bicycles showed no signs of recovery in China, where retail sales of low-end and middle-range bicycles continued to be sluggish. "On the other hand, bike sharing that spread widely in urban areas (of China) last year is facing a period of realignment," the company said.
Shimano also said Southeast Asia "lacked vigor," and South American consumption showed signs of slowdown due to the effects of currency depreciation in Brazil and Argentina. Distributor inventories were at an appropriate level both in Southeast Asia and South America.
It said Japanese bike sales have remained sluggish but showed signs of improvement after April.
Net sales across all divisions was up 7.1 percent, to 175 billion yen. Operating incomes across all divisions was up 11.9 percent.
Shimano's fishing business was up 8.4 percent in the half, and operating income in fishing was up 32 percent. Fishing sales were 37 billion yen for the half.
Shimano held to its previous forecast of 350 billion yen in sales for the year, but revised down its nonoperating income forecast due to the strong U.S. dollar and the costs of a factory fire in the second quarter. Previously Shimano had forecast ordinary income for the full year at 70.9 billion yen. Now it forecasting 65.6 billion yen.
The company said the fire costs totaled 1.6 billion yen. The March fire was at a surface treatment facility at Shimano's factory in Sakae, Japan.
