Market conditions help drive up Shimano’s year-on-year sales
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Shimano Inc. has reported year-to-date net sales from its fishing business of 50,058 million yen, an increase of 3.3% over the corresponding period last year. Operating income also increased by 1.9% to 5,476 million yen.
Qualifying the performance, Shimano says that for the first nine months of 2017 European economies were on a recovery trajectory owing to continued improvement in the labour market and recovery of personal consumption. However, the appreciation of the Euro caused a lull in the recent improvement in manufacturing.
In the USA, despite temporary weakening of personal consumption in the wake of two major hurricanes, moderate economic expansion continued, driven by a buoyant labour market and improved consumer spending, says Shimano in its business overview.
In Japan, while the labour market continued to improve, a moderate recovery of the economy was evident, albeit lacking in vigour.
In these circumstances, the Shimano Group “sought to attract consumers with captivating products designed to enrich their experience.”
Shimano describes the fishing market in Japan as robust, benefiting from relatively stable weather. However, its two major markets in North America, Texas and Florida, were affected by heavy hurricane damage in late August.
In Europe, the overall market slowed somewhat, reflecting increases in distributor inventories in the UK and Germany and the impact of an extremely hot summer in Italy.
In Asia, sales in China and South Korea continued to be robust, and the recovery of the Southeast Asian market, which had been affected by an economic slowdown, was indicated by improvements in distributor inventories. The Australian market was also robust due to improved weather and a better economic environment.
In these market conditions, lure-related products and other new offerings were well received and achieved good sales growth. As a result, sales in Japan exceeded the previous year’s level.
Although sales in North America were dampened by market conditions, overseas sales exceeded the previous year’s level thanks to buoyant sales in China, South Korea and Australia, supported by recovering sales in South East Asia.
Shimano Inc., which also operated in the bicycle market, announced consolidated net sales for its total business for the first nine months of 2017 of 245,969 million yen, a 1.8% rise on the same period last year. However, operating income for the same period fell by 4% to 46,550 million yen.
Based on recent performance, the global tackle manufacturer is forecasting consolidated net sales of 330,000 million yen for the full year, a 2.2% increase year-on-year, and operating income of 63,000 million yen, a drop of 2.4% year-on-year. Both numbers are in line with the company’s previous forecast.