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Shimano Shares Fall Sharply on Disappointing Earnings As Cycling Boom Eases

   By Kosaku Narioka 
 

Shimano Inc. shares fell sharply Wednesday after the Japanese maker of bicycle parts posted disappointing first-quarter earnings and cited cooling of the pandemic-driven cycling boom.

The shares were recently down 11% at Y23,045 after dropping as much as 13% earlier.

Shimano said Tuesday after market closed that net profit rose 0.5% from a year earlier to Y28.74 billion ($225.9 million) for the first quarter of 2022 while revenue rose 14% to Y144.05 billion. The net profit missed the estimate of Y29.65 billion projected by a FactSet poll of analysts.

Shimano's earnings rose sharply in 2020 and 2021 as the Covid-19 pandemic triggered a cycling boom. The shares gained 27% in 2021 after a 36% rise in 2020.

The company said there were signs of an easing in the global cycling boom, though demand remained strong for high-end products in the first quarter.

Shimano expects revenue to rise 6.1% to Y580.00 billion and net profit to increase 1.3% to Y117.50 billion in 2022.

 

Write to Kosaku Narioka at kosaku.narioka@wsj.com

 

(END) Dow Jones Newswires

April 26, 2022 22:49 ET (02:49 GMT)

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