JAPAN: Daikin has reported a 2.2% drop in sales and 8.5% fall in profits to the year ending March 2021 – its first such declines in 11 years.

The Osaka-based air conditioning, refrigeration and chemical manufacturer recorded net sales of JPY2,493,386m (US$23bn) in the year to March 2021, and net income of JPY156,249m. Operating income was JPY238,623m ($2.2bn), down 10.1% from the previous year.

Global sales for its largest air conditioner and chiller business segment were down 1.5% to JPY2,273,821m ($21bn). This was blamed on a global decline in demand for commercial air conditioners, particularly in the retail sector, during the Covid-19 pandemic.

European growth

Counter to declines elsewhere, Daikin Europe witnessed a 2.2% growth to JPY405,610m ($3.73bn, €3.07bn). Despite difficulties in the commercial sector, there was reported to be a strong demand for HVAC solutions in residential applications, and green home renovations with heat pumps replacing traditional boilers.