JAPAN: Daikin has recorded new highs for sales and operating income in the first quarter of 2019, up 4% to JPY681.3bn ($6.41bn) compared to last year.
The air conditioning division, its largest segment, saw sales rise 5% to JPY625.3bn ($5.9bn) in the first quarter to the end of June. Growth was recorded across all major regions, including Japan, the Americas, Europe, and Asia. Even in China, which saw an economic slowdown, revenue and profits increased on a local currency basis due to an improved product lineup.
In Europe, sales grew across all air conditioning sectors. Overall regional sales exceeded the previous fiscal year, offsetting the effect of currency depreciation in Turkey. Unseasonable weather in April and May adversely affected residential sales in Italy and Spain, but sales of high-value-added products such as R32 units expanded mainly in France and the UK.
Sales of SkyAir R32 models and VRV systems expanded. In heating, the lineup of heat pump type hot water heating systems using R32 saw sales increase by 24%. Applied systems saw sales increase by 15%, benefitting from the introduction of R32 chillers.
Sales in the Middle East, which is the largest market, and Germany, saw significant growth.
Fluorocarbon gas sales declined 23% due to the slow down of the demand in Europe against the high demand of the same quarter in 2018.