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.”

IEA: Global CO2 emissions rise to all-time high

BERKELEY, California, 11 March 2022: As You Sow, an advocacy non-profit that promotes environmental and social corporate responsibility, quoted the International Energy Agency (IEA) as saying that global carbon dioxide emissions (CO2) from energy combustion and industrial processes rose to their highest ever level in 2021. Making the announcement through a Press release, As You Sow added that a six per cent increase in 2021 pushed emissions to 36.3 gigatonnes, erasing the five per cent reduction in 2020, owing to the COVID-19 pandemic.

As greenhouse gas emissions continue to climb higher when the effects of climate change are increasingly being felt it highlights the need to go beyond targets and implement immediate tangible emissions reductions, As You Sow said.

More than 70 countries, accounting for more than 80% of global CO2 emissions and 90% of global GDP, have committed to net-zero, as have more than 5,000 companies, As You Sow said. In order to see progress critical for keeping global temperatures from rising beyond 1.5 degrees C, there is a need for companies to pursue ambitious near-term targets, robust transition plans detailing steps to achieve targets and leadership in advocating for sweeping climate policy, As You Sow added.

As You Sow’s recent report, Road to Zero Emissions scores companies on net-zero progress and is in step with the Intergovernmental Panel on Climate Change’s findings that near-term action is needed by prioritizing year-over-year emissions reductions aligned with 1.5 degrees C.

Danielle Fugere, President, As You Sow, said: “Investor value is being put at greater risk as emissions continue to rise. It is imperative for the safety of human society and the global economy that emissions are reduced immediately in line with the Paris Agreement. When it comes to climate change, we will not be given second chances, so the private sector must create climate transition plans that prioritize accountability and transparency.”

French transport refrigeration rental company aims for UAE market-share

DUBAI, UAE, 7 March 2022: French transport refrigeration rental company, Petit Forestier, announced its intention of garnering market share in the UAE’s food cold chain sector.

Speaking to Climate Control Middle East, Petit Forestier, which also manufactures its refrigerated boxes, pointed out that its entire fleet of vehicles is ATP-certified, which enhances food safety, and ensures a low carbon footprint and cost-savings for the customer. ATP stands for “Accord Transport Perissable” (Agreement on the International Carriage of Perishable Foodstuffs and on the Special Equipment to be Used for such Carriage). It comes under the purview of the Transport Division of the United Nations Economic Commission for Europe (UNECE).

Stanislas Przyklang du Chassin, its Managing Director for UAE operations, highlighted that the company is the first to supply ATP-certified boxes in the UAE. “We are trying to push everybody and explain to everybody that it is really important for food safety that we install these here,” he said. “These boxes are between 900 kilograms and one ton lighter than locally available boxes.

Imagine how green they are. Lighter means they consume less petrol – the fuel consumption is 20-30% less than locally available boxes – which means lower CO₂ emissions. So, we are working on the cold safety and the green side of the vehicle.”

Przyklang du Chassin admitted that ATP-certified boxes are 25-30% more expensive that locally available boxes. However, when all aspects are considered, they would guarantee greater cost savings for clients. “Yes, the cost of purchasing is higher, but at the end, the vehicle is one ton lighter, which means we can save 20-30% on fuel costs,” he said. “We have customers who are doing one petrol tank per day, which means they get their money back in one year. Also, a lighter vehicle means you don’t have to replace your brakes that often, which will mean a reduced cost of maintenance.”

Petit Forestier, which has factories in France and Poland, manufactures 7,000 insulated boxes a year. It said it is the only rental company that has an innovation department, working every day to find solutions related to green transportation and food safety. Dimitri Doinet, its Sales Director, said innovation is a key strength of the company.

Pointing to the vehicles, he highlighted the use of fewer metallic parts in the chassis, which make them lighter and, hence, more fuel efficient. He also highlighted that the insulation of the boxes is six centimetres in thickness, as compared to 10 centimetres in boxes available in the country. This, he said, allows for carrying more foodstuffs per load. He further highlighted the use of door sensors, which cut off the cold units on opening the doors of the truck, thus preventing exposure to hot ambient conditions.

From a food safety perspective, Doinet pointed to the use of unique antimicrobial air strips for preventing the ingress of hot ambient air to the vehicle. This, he said, was only the beginning, though. Adding to this, Przyklang du Chassin said the company offers vehicles fitted with mechanical air curtains, They are currently available only in Europe, though. He said customers are happy with the innovation, for they do not have an obstruction while entering the vehicle.

Przyklang du Chassin said the company would eventually offer air curtains in vehicles in the UAE. “This is something we have to test,” he said. “We have plans of bringing them here in the next five years.”

Speaking on the rental model of the business, Przyklang du Chassin said the company was proposing renting its vehicles for 5-6 years, during which it would offer commitment to the customer to manage every aspect of the assets. That way, he said, the customer would know that cold safety is respected. Petit Forestier, he said, offers a full complement of aftermarket services, including maintenance, repair and replacement.

Speaking on the speed of service and reaction time, Przyklang du Chassin said the company has the ability to give a replacement vehicle within a short duration. “If the client has any issue on the road, we can give a replacement vehicle in 20-30 minutes, so as to be able to continue delivering perishable foodstuffs,” he said. “With refrigerated vehicles, if you have a breakdown, you can lose everything, especially here. So, we have developed a full service to replace vehicles very quickly.”