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Investing.com -- Shimano reported a 57% year-over-year decline in third-quarter operating profit to ¥8.4 billion, falling short of analyst expectations but meeting company guidance.
The result came in below the ¥11.5 billion forecast by analysts and the ¥10.4 billion consensus estimate.
Several factors contributed to the operating profit decline, including a ¥2 billion decrease in bicycle sales, though this was partially offset by a ¥0.3 billion increase in fishing tackle sales.
The company also saw a ¥5.6 billion negative impact from cost reduction effects and other factors, primarily due to lower plant operating rates. Additional negative factors included a ¥2.8 billion impact from SG&A expenses and ¥1.1 billion from foreign exchange effects.
Regarding inventory adjustments, Shimano’s outlook remains largely consistent with its position from three months ago. The company expects most customers to complete their inventory adjustments by the end of 2025.
In a separate development, Shimano announced it has completed its share buyback program ahead of schedule. The program, announced on February 12, 2025, involved the repurchase of up to 2.7 million shares at a maximum cost of ¥50 billion, originally scheduled to run through January 31, 2026.
The company’s policy to repurchase approximately ¥100 billion in shares over the two-year period beginning February 2025 remains in place.
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