OSAKA, Japan (BRAIN) — Shimano’s net sales in its bicycle components division were up 4.1% in the first half of its fiscal year, which ended June 30. Operating income in the division decreased 3%, however.
Bike division sales in the half were 144 billion yen ($1.2 billion), up from 138 billion yen in the first half of last year. Operating income for the bike division was 29 million yen.
The company revised down its forecast for net sales and operating income for the second half, by 0.8% and 8.2% respectively. Shimano said it expects an increase in expenses for a new product launch in the half and increased costs of production and manufacturing improvement processes. The forecast is for all company divisions, including bikes and fishing. The company did not elaborate on the product launch.
During the first half, net sales across the entire company were down 4.1%, to 182 billion yen. Companywide operating income was down 1.3% to 34 million yen.
The company gave its traditional overview of the world market for bicycle parts in its earnings announcement: