Japanese cycling equipment-maker Shimano Inc. raised its fiscal 2018 net income and basic EPS, as first-half earnings and sales rose, the company said July 30.
For the 12 months ending Dec. 31, 2018, the Osaka-based maker of bicycle parts and fishing rods raised its full-year projection for net income attributable to the owners of the parent company to ¥49.3 billion from a previous forecast of ¥46.0 billion, reflecting nonoperating income impacted by relatively weak major Asian currencies and the U.S. dollar's continued appreciation. The company also raised its basic EPS forecast to ¥531.81 from ¥496.21 for the fiscal year.
Shimano's forecast for operating profit remained unchanged at ¥67 billion. It maintained its sales estimate at ¥350 billion for the fiscal year.
The revised outlook came as Shimano reported net income attributable to owners of the parent company in the six months ended June 30 increased 48% to ¥27.72 billion from ¥18.73 billion in the comparable first half a year earlier. Basic EPS rose to ¥299 in the first half from ¥202.03.
Sales in the first half jumped 7.1% to ¥174.73 billion from ¥163.08 billion.
Shimano said first-half 2018 sales of bicycle components continued to show no signs of recovery in China as the bike-sharing industry faces a realignment this year. Sales were also weak in Japan as well as in other emerging economies such as Southeast Asia and South America. Sales in Europe and North America were in line with 2017, and the segment posted increases of 6.8% in sales and 9.0% in operating profit in the first half.
As of July 30, US$1 was equivalent to 110.97 Japanese yen.