ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon PrintIcon Twitter
Travel & Leisure

Bike-to-work boom boosts Shimano earnings

Parts maker sees shortages in Europe and America as demand surges

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.

Shimano cited increased demand across much of the world for bike parts, as well as for fishing equipment, which generates about 20% of its revenue. Monthly sales have been recovering since May, and the company noted shortages in distributor inventories in European and North American markets.

Total sales for the year through December are forecast to reach 370 billion yen, close to a company record.

Many newcomers to biking have been buying midrange and budget models as an easily accessible form of exercise and recreation, according to Shimano. The company also saw steadily rising demand in Europe for parts for high-end electric bicycles.

The pandemic has forced Shimano to put bike races and fishing competitions on hold, which had raised concerns about the potential effect on its marketing efforts, but demand looks likely to keep growing for the time being.

Going forward, "the question is whether people who started riding bicycles because of the coronavirus will become fans," the company says.

Shimano has indicated that it has no plans at this time for a significant investment in increased production capacity.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this monthThis is your last free article this month

Stay ahead with our exclusives on Asia;
the most dynamic market in the world.

Stay ahead with our exclusives on Asia

Get trusted insights from experts within Asia itself.

Get trusted insights from experts
within Asia itself.

Try 1 month for $0.99

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this month

This is your last free article this month

Stay ahead with our exclusives on Asia; the most
dynamic market in the world
.

Get trusted insights from experts
within Asia itself.

Try 3 months for $9

Offer ends October 31st

Your trial period has expired

You need a subscription to...

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers and subscribe

Your full access to Nikkei Asia has expired

You need a subscription to:

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers
NAR on print phone, device, and tablet media

Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century.

Celebrate our next chapter
Free access for everyone - Sep. 30

Find out more