Global turmoil cannot be ignored says Shimano
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Fishing tackle giant Shimano saw its fishing tackle sales rise by a moderate 3.3% in 2017 and has warned that international market turmoil could have an effect on the world economy this year.
While predicting a sustained recovery in its domestic market in 2018, it says that events on the Korean Peninsula and in the Middle East, as well as US policy developments, could have an impact on the economy which cannot be ignored. “Concerns exist that the increasing risk of global conflict and confusion in domestic politics will pour cold water on the economy,” it told investors at the year-end presentation of its financial results.
It added that its North American market was severely affected last year by the two major hurricanes that hit the large markets in Texas and Florida, but that it expected an improvement on the back of better corporate investment resulting from tax reforms and recovery in spending in a good jobs environment.
In Europe it reported an increase in distributor inventories as retail markets fell into a slump in the UK, which led the market in the first half of the year, as well as in Germany and Italy. Despite a delay in the start of the fishing season and the sluggish performance of major chain stores, sales stabilised in Australia in the second half of the year to deliver a robust performance.
Shimano said that China and South Korea continued to experience robust sales as the recovery trend of the Southeast Asian market became evident.
Net sales from the fishing tackle sector were 65,220 million yen. They were 335,800 million yen – up 4% on the previous year – when taking into account Shimano’s bicycle components and other businesses.