Daikin Cuts Profit Forecast on Yen Strength After Posting Quarterly Loss
Stock Chart for Daikin Industries Ltd (6367)
Daikin Industries Ltd., the world’s second-largest air conditioner maker, cut its annual profit forecast by a third after posting a quarterly loss.
Net income is expected to be 25 billion yen ($309 million) for the year ending March 31, compared with an earlier estimate of 37 billion yen, Daikin said in a statement. It cited the yen’s strength and economic uncertainty for the outlook cut.
“Business conditions have become increasingly uncertain since the effects of economic policies in various countries have worn off,” Chairman Noriyuki Inoue said today at a briefing in Osaka, where the company is based. He estimated the yen, which has risen 13 percent against the U.S. currency since April, will trade at 80 per dollar in the second half.
Daikin’s net loss was 1.16 billion yen in the three months ended Sept. 30, compared with a 7.82 billion yen profit a year earlier, according to Bloomberg data. The company, in a preliminary earnings statement on Oct. 1, said it booked a 23.4 billion yen charge in the quarter because of a drop in the value of its stockholdings.
Second-quarter operating profit, or sales minus the cost of goods sold and administrative expenses, rose 89 percent to 24.7 billion yen, beating the 23.4 billion yen average of four analysts’ estimates surveyed by Bloomberg. Sales rose 17 percent to 310 billion yen.
The shares closed 1.3 percent lower at 2,972 yen on the Tokyo Stock Exchange before the announcement, the first decline in four days. Daikin is down 19 percent this year, compared with an 8.1 percent drop in the Nikkei 225 Stock Average.
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