International. Daikin recently reported that it reached record levels in sales and operating profit for the sixth consecutive term, following the delivery of its 2018 financial results (end March 31, 2109).
In the Air Conditioning business, sales grew in all major regions, including Japan, America and Europe. In the chemicals business, sales expanded by focusing on the semiconductor market. While commodity market prices rose sharply and currencies in emerging countries depreciated, the company improved profitability by promoting total cost reductions and strict adherence to our selling price measures.
Moreover, despite the rapid slowdown of the Chinese economy, it was able to greatly maximize both sales and profits in China to achieve an operating profit that exceeded projections.
In the Americas, strong personal spending stemming from large-scale tax cuts in the United States energized the market and Daikin's sales outpaced the previous year by expanding the sales network and launching new products. To cope with higher commodity prices and the impact of tariffs due to China-US trade friction, the company initiated measures, such as increasing selling prices and cutting costs, to ensure profitability.
- In Residencial Unitario: they expanded their own network of distributors in important regions, in addition to promoting education and support to dealers, and market share grew significantly since the introduction of new inverter products for the middle zone (SEER 15-17).
- In ductless equipment: improved the sales network for VRV systems, and sales focused on the northeast region increased substantially for the high-end residential use market.
- Applied Systems: experienced a growth in the sale of equipment by strengthening the sales network and expanding the product line, and the After-Sales Service business grew.
The full report can be viewed by clicking here.
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