ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronEye IconIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailMenu BurgerPositive ArrowIcon PrintIcon SearchSite TitleTitle ChevronIcon Twitter
Companies

Hot Europe lifts shares of air conditioner maker Daikin

Higher sales in France and Italy expected to offer relief from China slowdown

People cool off in the Trocadero fountains across from the Eiffel Tower in Paris as a heat wave sweeps Europe.   © Reuters

OSAKA -- Shares in Japanese air conditioner maker Daikin Industries, a world leader in the sector, hit a year-to-date high on Wednesday amid a heat wave in Europe that the company thinks will help offset slower sales in China.

Daikin rose 0.72% on the Tokyo Stock Exchange, bucking the Nikkei Stock Average's 0.53% decline.

Europe is baking under summer temperatures that reached an all-time high of 45.9 C in France last month. Daikin's European sales have improved from a slow start in Italy and Spain during the spring, the company said.

The company forecasts a 17% sales gain in its European air conditioner business during the year ending next March, compensating for weakness in China.

Osaka-based Daikin also makes etching gas used in semiconductor production -- one of the products now subject to Japanese restrictions on exports to South Korea. Though this exposes the company to the risk of falling sales, the group's chemical business makes up a small share of operating profit at just over 10%.

The company forecasts a 3% rise in operating profit to 285 billion yen ($2.64 billion) for the current fiscal year, but said it will work toward a target of 295 billion yen. 

"High-growth Daikin has an easy time attracting investment," said Tsubasa Sasaki, an analyst at Mitsubishi UFJ Morgan Stanley Securities.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this monthThis is your last free article this month

Stay ahead with our exclusives on Asia;
the most dynamic market in the world.

Stay ahead with our exclusives on Asia

Get trusted insights from experts within Asia itself.

Get trusted insights from experts
within Asia itself.

Get Unlimited access

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this month

This is your last free article this month

Stay ahead with our exclusives on Asia; the most
dynamic market in the world
.

Get trusted insights from experts
within Asia itself.

Try 3 months for $9

Offer ends June 30th

Your trial period has expired

You need a subscription to...

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers and subscribe

Your full access to the Nikkei Asian Review has expired

You need a subscription to:

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers
NAR on print phone, device, and tablet media