Ziehl-Abegg reports record sales of 716 million euros

KÜNZELSAU, Germany, 31 March 2022: Ziehl-Abegg reported record sales of 716 million euros in 2021, compared to 639 million euros in 2020. Making the announcement through a Press release, the manufacturer of electric motors and fans said the figure posted in 2021 represented a growth of 11.9%. 

Peter Fenkl, CEO, Ziehl-Abegg, describing 2021, said, “In view of the problems with global supply chains, we took a cautious approach at times and, ultimately, managed to do pretty well in terms of sales.”

The company said it was equally heartening that the number of employees worldwide rose to 4,700, compared to 4,300 in 2020. 

Fenkl described the earnings situation as “more than difficult”, as the supply chain problems not only had an impact on delivery times but on pricing, as well. “Some suppliers had already increased prices so quickly towards the end of 2020 and then repeatedly in 2021 that we were unable to pass these on to the market on a 1:1 basis,” he said.

Based on the experience in the first quarter, the manager knows that this situation will become more acute in the current year. “I’ve never experienced anything like this before,” Fenkl said. It is relevant to highlight that Fenkl has been at the helm of the family-owned business for more than 20 years. 

Ziehl-Abegg said it is regarded as a company with a high level of vertical integration. “We now want to expand this even further,” Fenkl said. However, growth at the headquarters in Hohenlohe is problematical, as there is a serious shortage in the availability of the necessary additional workers there, the company said.

The intention, therefore, is to expand existing production facilities and establish new production sites, it added. Fenkl said: “Additional production sites will bring us closer to our customers.” 

The company said the 11.9% growth in sales last year provides a good base for further growth. Ventilation systems were the sales driver in the year just past, contributing EUR 637 million to the overall result, the company said.

Fenkl said he held no illusions about the challenges that lie ahead. “Work shifts are currently being repeatedly cancelled because of a lack of components – how can you realistically plan and how are you supposed to satisfy your customers?” he said.  

Ziehl-Abegg employs 2,600 people in Germany, 200 more than a year ago. The number of employees worldwide rose from 4,300 to 4,700. Since employees of the baby boom era in Germany are now increasingly reaching retirement age, this is having a direct impact on the available workforce potential. “Companies must, therefore, openly target Generation Z, the post-millennials,” Fenkl said. “We mustn’t persist with old ways of thinking but instead take the wishes and needs of young people seriously.” 

Danfoss: ‘A year above expectations’

NORDBORG, Denmark, 3 March 2022: Danfoss reported an increase in sales by 29% to EUR 7.5 billion in 2021. Making the announcement through a Press release, Danfoss described the performance as a record sales level.

The company said organic growth reached 18% year-over-year. The five-month period of ownership of Eaton’s hydraulics business added EUR 786 million to the top-line, the company said, adding that it delivered extensive growth in all regions. Investments in innovation (R&D) increased 23% to EUR 328 million, the company said. At the same time, it said, operating profits reached the highest level ever, with EBITA of EUR 969 million and EBITA margin of 12.8%. Net profit reached EUR 631 million, up 45%, it added.

“We have never seen better opportunities for Danfoss,” said Kim Fausing, President & CEO, Danfoss. “It is our ambition to be the leading technology partner for our customers in the green transition – decarbonising through energy efficiency, low emissions, and electrification. After all, the greenest energy is the energy that we don’t use.

Our momentum is clearly reflected in our 2021 annual results. Danfoss has delivered the best results in our history, and we are in a strong financial position.

“What makes me most proud is how our teams continue to deal with the pandemic and the significant challenges with the supply chain while delivering a transformational, record year. Unfortunately, these considerable challenges affected our customer service.

In addition, all three segments were affected by inflationary pressure. We will continue to do everything we can to serve our customers, and we will continue our high investments in capacity expansion, innovation and digitalisation of Danfoss.”

Danfoss said it assumes a positive outlook in the market in 2022, with a continued ambition to expand or maintain market share. The outlook includes a full year ownership of Eaton’s hydraulics business, it said. Sales are expected to be in the range of EUR 8.8-9.8bn for the full year, it said. The EBITA margin is expected to be in the range of 11.4-12.9%, following continued investments in the development of new products and solutions, it said.

The expected growth and profitability performance is dependent on the development of the pandemic, the global supply chain disruptions as well as the continuation of the current strong growth rates in the world economy, it added.

Regarding the conflict between Ukraine and Russia, the company said its first priority is to keep its people safe. We are monitoring the situation carefully and will act accordingly.