Bike-to-work boom boosts Shimano earnings

Parts maker sees shortages in Europe and America as demand surges

Shimano has not been able to hold bicycle races due to the COVID-19 pandemic, but its sales of bike parts and fishing gear have been strong. © FrontzoneSport via Getty Images

HIROYUKI SHIODA, Nikkei staff writer

October 28, 2020 00:32 JST

OSAKA -- Japanese bicycle parts maker Shimano revised its 2020 earnings forecast upward Tuesday amid a stronger-than-expected recovery, as consumers gravitate toward bikes as a healthy, eco-friendly transportation method with a low risk of coronavirus transmission.

Net profit is now expected to grow 24% this year to 64.3 billion yen ($613 million), an upgrade from the previous projection of 58.3 billion yen.