The profit is under pressure in spite of positive growth in net sales

• Net sales increased by 14% to 22.2 billion DKK from 19.4billion DKK in the same period last year. Growth was 12%, when converted at last year’s exchange rate and adjusted for acquisitions and divestments, compared to 14% in the same period the year before.
• Operating profit excl. other income and expenses increased by 16% to 1,634 million DKK from 1,411 million DKK, while the operating profit (EBIT) was 1,616 million DKK compared with 1,601 million DKK in 2006.
• Profit before tax was 1,378 million DKK compared with 1,402 million DKK in 2006. The profit for the year was 1,063 million DKK, compared with 1,038 million DKK in the year before.
• The number of employees increased to 22,323 from 20,612 in 2006.

Expectations for 2008:

• Net sales are expected to be between 23.5 and 24.5 billion DKK. Compared to 2007, this will equal growth of between 6% and 10%.
• The operating profit (EBIT) is expected to be between 1.9 and 2.2 billion DKK.
• The EBIT margin excl. other operating income etc., and the EBIT margin itself, is expected to be between 8% and 9%.
• The expectations for 2008 do not include the acquisition of the shares in Sauer-Danfoss Inc., which makes Danfoss the majority shareholder.

Please address any enquiries regarding this announcement to:
Vice CEO Niels B. Christiansen (+45 74 88 75 50) or Chief Reputation Officer Ole M. Daugbjerg (+45 7488 2008).