By Kosaku Narioka


Shimano Inc. shares fell sharply Wednesday morning after the Japanese maker of bicycle parts posted a 30% drop in the first-quarter net profit due to weaker sales and downgraded its earnings guidance for this year.

The company's shares were recently 9.4% lower at 20,500 yen after falling as much as 11% earlier.

Shimano said Tuesday after market close that net profit fell to Y20.20 billion ($151.1 million) for the quarter ended March 31 from Y28.74 billion in the year-earlier period.

First-quarter revenue dropped 12% to Y126.07 billion.

Operating profit from its bicycle parts business fell 32% to Y22.12 billion as sales declined due to concerns about high inflation and an economic slowdown, the company said.

Meanwhile, operating profit from its fishing-equipment business rose 5.9% to Y5.89 billion.

Shimano lowered its revenue and net-profit projections for 2023, citing high levels of market inventory. It now expects revenue to fall 27% to Y460.00 billion and net profit to drop 46% to Y69.50 billion.


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


(END) Dow Jones Newswires

04-25-23 2213ET