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.

Danfoss completes USD 3.3 bn acquisition of Eaton’s hydraulics business

NORDBORG, DENMARK, 3 August 2021: Danfoss said it has officially finalised its USD 3.3 billion (approximately €3 billion) acquisition of Eaton’s hydraulics business, following confirmation of all necessary regulatory approvals and closing conditions. Making the announcement through a Press release, the company said the move will see the Danfoss Group grow in size by a third and establish itself as a global leader in mobile and industrial hydraulics.

Danfoss said mobile hydraulics has been one of its core and most successful businesses for over 50 years. The acquisition of Eaton’s hydraulics business is a vital aspect of its growth strategy, the company said. Eaton’s hydraulics business will be combined with the Danfoss Power Solutions business segment, adding approximately 10,000 employees worldwide and USD 1.8 billion (around €1.5 billion) in 2020 global sales, it said. Combining the two organisations will double the size of Danfoss Power Solutions, increasing its innovation capacity twofold, it added.

The strengthened Danfoss Power Solutions will have the broadest selection of mobile and industrial hydraulics products and solutions available on the market, with the full line offering including fluid conveyance systems, the company said. Its distribution channels have also been significantly boosted, while its local application support and geographical reach have increased considerably, it said. All of these benefits will enable Danfoss Power Solutions to become an even stronger technology partner for existing and new customers, plus take the lead in digitalisation and electrification, it added.

Kim Fausing, President and CEO, Danfoss, said: “This is a great day for Danfoss as we welcome 10,000 new colleagues into the organization and create a global leader in mobile and industrial hydraulics. By combining the knowledge and experience of the two strong businesses and great teams, our customers will receive an unmatched level of service and expertise from a single partner. We will continue our significant investments to stay on the forefront of technology leadership and provide solutions that improve productivity and reduce emissions to meet the requirements of the future.”

Eric Alström, President, Danfoss Power Solutions, said: “The need for technologically innovative and industry-changing hydraulic solutions is as great as ever. We’re very pleased to complete this significant investment in our core hydraulics business so we can serve our customers and partners even better than before.

Combining the two robust businesses represents a perfect match and provides countless opportunities, such as increasing our engineering expertise and capabilities, doubling our global application support and extending the value of our Application Development Centers and digital design tools. Adding fluid conveyance and industrial applications are other assets gained through this transaction.”

Paulo Ruiz, President of the former Eaton hydraulics business, added: “This is an exciting new chapter for both of our businesses and our people, which are stronger together. The new Danfoss Power Solutions team will create a global leader in mobile and industrial hydraulics, drawing on long legacies of innovation and industry-leading expertise. The combined product portfolio and broadened global reach will better serve customers and distributors all around the world.”