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Reality behind Daikin's record profit chills its shares

A/C maker faces limits in how far it can raise prices to cover costs

Despite strong sales, Daikin Industries is under pressure to improve its profit margin.

OSAKA -- Even with Japanese air-conditioner maker Daikin Industries well on the way to a second straight year of record net profits, its stock price is still down from a year earlier as doubts persist over the sustainability of its earnings.

The company expects an operating profit of 363 billion yen ($2.8 billion) on net sales of 3.76 trillion yen for fiscal 2022, which will end this coming March 31 -- enough to reach its medium-term targets for both a year early.

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