TOKYO (BRAIN) Shimano's sales of bicycle products through the first nine months of the year totaled 266,243 million yen ($1.749 billion), up 5% from the same period last year. Bicycle-related operating income in the period was down 27% from the same period last year, to 30,161 million yen.

"While the strong interest in bicycles continued as a long-term trend, market inventories remained high in some regions, and inventory adjustments progressed in line with market trends in each region," Shimano said in its consolidated financial results report.

"Overseas, in the European market, retail sales of completed bicycles were robust backed by stable weather conditions, but market inventories remained at a somewhat high level.

"In the North American market, retail sales of completed bicycles remained weak due to an uncertain economic outlook, but market inventories maintained appropriate levels," the company said.

Shimano's fishing division saw a 4.6% decrease in sales in the first three quarters, to 84,435 million yen. Fishing operating income decreased 31%. Company-wide sales were up 4.8%, while operating income decreased 28%, and ordinary income decreased 48% to 30,248 million yen, which the company said was partly due to valuation loss on foreign exchange. Company-wide net income decreased 61.0% to 16,105 million yen.

Shimano stuck to its previously announced forecast for the complete year, which calls for a 2% increase in revenue over last year, a 29% decrease in operating income, and a 60% decrease in net income.

In September, Shimano apologized after Japanese authorities cited the company for delaying payment to some subcontractors. According to a Shimano statement, the Japan Fair Trade Commission issued a "recommendation" to the company for requiring 121 subcontractors to store Shimano-owned molds and other equipment free of charge. The company also asked the subcontractors to inspect and inventory the stored equipment periodically.