HVAC maker Daikin Industries (Osaka, Japan) reported net sales of 286.3 billion yen in the third quarter of its fiscal year 2012, up from 283.6 billion yen in 3Q fiscal year 2011. The third quarter of FY 2012 ended at the close of December 2012.
Operating income in the quarter was 10.6 billion yen, down from 12.4 billion yen in 3Q FY 2011. The percentage of income to net sales was 3.7%, from 4.4% in 3Q fiscal year 2011.
Net income in the quarter was 10.5 billion yen, up from 3.2 billion yen in the 3Q FY 2011.
Daikin forecasts net sales for the full fiscal year 2012 to be up 4% to 1270 billion yen.
The company said demand in its Air-Conditioning business in the third quarter was sluggish in principal markets of Europe and Australia. Revenue and profits increased from the development of sales expansion in China and expanding demand in emerging markets.
Daikin's other principal business segment, Chemicals, was challenged by sluggish demand from the Japanese semiconductors industry and Asia and inventory adjustment for lower automobile demand in Europe. The unit was significantly affected reduced selling prices.
In the second half of 2012 Daikin acquired U.S. HVAC producer
Goodman Global Group, Inc., based in Houston. The $3.7 billion was completed on Nov. 1, 2012, although results are not yet consolidated with Daikin results.
Through Goodman, Daikin plans to launch advanced, environmentally friendly products in the U.S. residential and commercial HVAC markets.
Daikin also hopes to improve competitiveness further by capitalizing on Goodman's lean management know-how in the development of business in emerging economies and high-volume markets.
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