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Danfoss A/S: Half-year report 2007

10 September 2007
"With regard to sales, the half-year result fully meets our expectations and it is particularly good to note the positive development on the Russian market. The underlying business still developed reasonably, but the increasing raw material prices put pressure on the profitability. Even though growth in the second half-year seems to be slightly lower, expectations are that we will reach the targets we set for 2007."

Jørgen M. Clausen, President and CEO, Danfoss A/S

Highlights from the first half-year of 2007:

  • Net sales increased by 20% to 10.9bn DKK from 9.1bn DKK in the same period last year. Growth was 15%, when converted at last year’s level of exchange rates and adjusted for acquisitions and divestments, compared to 11% in the same period the year before.
  • Operating profit excl. other income and expenses increased by 20% to 702 million DKK from 584 million DKK, while the operating profit (EBIT) increased to 712 million DKK from 672 million DKK in the first half-year of 2006.
  • Profit before tax was 758 million DKK against 631 million DKK in the same period last year. The profit before tax includes extraordinary income from the first quarter of 187 million DKK from the sale of Damcos A/S.
  • The number of employees increased to 21,784 from 19,292 at the same time in 2006.

Expectations for 2007:

  • Danfoss retains its expectations for both net sales and profit for 2007, as was announced in connection with the publication of the 2006 accounts.
  • Consequently, the net sales are expected to be at the high end of the range 21-22 billion DKK. Compared to 2006, this will equal growth of between 8% and 13%.
  • The operating profit (EBIT) is expected to be between 1.6 and 1.8 billion DKK, of which acquired companies are expected to contribute with 50 million DKK. The full impact of the companies acquired in 2006 is not expected to show until the 2008 profits. The EBIT margin is expected to be around 8%.
  • Any impact of future acquisitions and divestments has not been included in the expectations.


    Please address any enquiries regarding this announcement to:

    Vice CEO (COO) Niels B. Christiansen, Executive Vice President (CFO) Frederik Lotz or Chief of Staff Ole M. Daugbjerg (+45 7488 2008).
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