Danfoss A/S: First quarterly report 2008

• Net sales reached 5.4 billion DKK, which is largely level with the same period in 2007. Growth was 2%, when converted at last year’s level of exchange rates and adjusted for acquisitions and divestments, compared to 19% in the same period the year before.
• The profit before other income and expenses fell by 31% to 275 million DKK from 400 million DKK, whereas the operating profit (EBIT) was 272 million DKK compared to 417 million DKK in the year before. The result should be seen in light of the fact that the 2007 EBIT was positively affected by the profit obtained from the sale of Damcos A/S, as well as the fact that the first quarter of 2007 was extraordinarily good.
• The result for the period was 125 million DKK, compared to 428 million DKK in the year before. Allowing for the fact that the comparative figure from 2007 was extraordinarily good, the result is considered to be satisfactory, in spite of the fact that it did not fully meet Danfoss’ expectations.
• The number of employees grew to 22,540 from 21,299 in the first quarter of 2007.

Expectations for 2008:

• Danfoss retains its expectations for both net sales and profit for 2008, as was announced in connection with the publication of the 2007 accounts.
• Net sales are expected to be between 23.5 and 24.5 billion DKK. This equals growth of between 6% and 10% compared to 2007.
• The operating profit (EBIT) is expected to be between 1.9 and 2.2 billion DKK.
• The EBIT margin excl. other 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 make Danfoss the majority shareholder. (This will not take place until the deal is approved).
  

Please address any enquiries regarding this announcement to:
Chief Reputation Officer Ole M. Daugbjerg, +45 7488 2008.