TOKYO (dpa-AFX) - Shimano Inc. (SHM1.F), a Japanese maker of products for bicycling, rowing, and fishing, on Tuesday reported a sharp decrease in net income for the first half, reflecting higher cost of sales and foreign exchange losses. However, the company posted a rise in revenue, helped by improved revenue from Bicycle Components segment.
For the six-month period to June 30, the firm recorded a net income of 3.961 billion yen, or 44.90 yen per basic share, less than 43.704 billion yen, or 487.49 yen per basic share, in the same period last year.
Profit before income taxes declined to 14.017 billion yen from last year's 55.562 billion yen. Ordinary profit stood at 14.038 billion yen as against the prior year's 55.625 billion yen. Operating profit was 28.123 billion yen, compared with 30.955 billion yen in 2024.
Cost of sales moved up to 150.772 billion yen from the prior year's 132.949 billion yen. Foreign exchange losses were 21.690 billion yen, compared with a gain of 13.096 billion yen last year.
Shimano posted sales of 237.409 billion yen, up from 216.887 billion yen in the previous year. The Bicycle Components segment generated revenue of 162.594 billion yen, higher than 181.424 billion a year ago.
Looking ahead, for the full year, the company has revised down its annual guidance, citing the anticipated continuation of inventory adjustments in the Chinese market, leading to an expected drop in profit margin due to an increase in expenses in a phase of production adjustments at factories.
In addition, the firm expects an increase in non-operating expenses, including foreign exchange losses associated with the appreciation of Asian currencies caused by the weaker U.S. dollar in the first half.
For the 12-month period to December 31, Shimano now expects a net profit of 30.500 billion yen, compared with the earlier guidance of 63.800 billion yen. Basic income per share is now anticipated to be 347.97 yen per share against 722.68 yen previously.
The company now projects sales of 460 billion yen, lower than the earlier outlook of 470 billion yen.
For the full-year 2024, Shimano had recorded a net profit of 76.329 billion yen, or 853.36 yen per share, on sales of 450.993 billion yen.
For the full-year, the company still expects to pay a total dividend of 339 yen per share, higher than last year's 309 yen per share.
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