Danfoss raises sales expectations for 2022
NORDBORG, Denmark, 23 August 2022: Danfoss is transforming, with half-year results setting a strong foundation to deliver on Core & Clear Strategy 2025. In the first six months of 2022, Danfoss said through a Pres release, it grew by EUR 1.6 billion, reaching EUR 4.9 billion in sales. The acquired hydraulics business added sales of EUR 1.1 billion, while organic growth was 13%, the company said.
According to Danfoss, growth was broadly based across the major markets of North America, Europe and Asia-Pacific, as well as in all three business segments. The Danfoss Power Solutions segment, which provides mobile and industrial hydraulics and electrification solutions, stood out with significant growth, the company said. Furthermore, the increasing demand for energy-efficient heating and cooling solutions, as well as power electronics, was driving a growing demand for technologies from Danfoss Climate Solutions and Danfoss Drives, it added.
On July 15, 2022, Danfoss signed an agreement to sell its Russian activities to local management in Russia. Closing of the transaction is expected in September 2022, the company said. Danfoss said it continued significant investments in innovation (R&D), up 38% from the first half, last year. At the same time, Danfoss said, it delivered a 27% increase in operating profits with EBITA of EUR 570 million. Net profit amounted to EUR 289 million, negatively impacted by the write-down of net assets related to the Russia exit, it added.
Kim Fausing, President & CEO, Danfoss, said: “Danfoss is transforming at full speed, and I am very pleased with the outstanding teamwork and strong performance of our teams around the world, despite the challenging times. With the transformational half-year results, we are setting a strong foundation to deliver on our Core & Clear Strategy 2025, fueled by bold investments for our long-term success. In a challenging business environment, we maintained our strong growth momentum, while keeping the integration of the hydraulics business well on track. On top of this, we closed the Semikron Danfoss transaction. The world is on the tip of an electrification revolution, and with this, we take an important step building a leading position. With the results for the first half and the closing of the Semikron transaction, we have raised our sales expectations for 2022.
“We have taken a big and bold step to put sustainability at the center of our Core & Clear 2025 strategy. The new ESG ambitions are clear, and our climate targets have been approved by the Science Based Targets initiative. We are energized by our promise to be the leading technology partner for our customers, decarbonizing through energy efficiency, machine productivity, low emissions, and electrification. Danfoss has never been better positioned to deliver on our purpose to engineer tomorrow to build a better future.”