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First quarter 2012: Danfoss opens the year as expected

15 May 2012
”In line with our expectations, the first quarter showed more moderate growth rates. In our core businesses, we maintained the strong 2011 net sales level and significantly improved our cash flow, thus strengthening our ability to finance our development going forward. This is most positive and is attributable to our climate and energy solutions, where Russia in particular has delivered high growth rates and Germany and the USA have exceeded expectations.

Our earnings level remains at the high end of the Group’s performance, historically speaking, which is satisfactory. As expected, earnings showed a minor decline, which we expect to be offset during the year as investments and cost control measures take full effect.

We therefore maintain our overall expectations for 2012 where vigilance and tight cost control will continue to be crucial elements due to the increasing uncertainties that continue to characterize the global economy. “

Niels B. Christiansen
President and CEO

Highlights from the first quarter 2012:

  • Net sales were DKK 8,357m against DKK 8,519m in Q1 2011, corresponding to a decline of 2%. Adjusted for divestitures, Danfoss reported growth of 2% compared to the same period last year.
  • Operating profit (EBIT) was DKK 796m compared to DKK 956m in the year-earlier period.
  • The free cash flow was DKK 122m at the end of Q1 2012 against DKK -265m in the same period last year.

Outlook for 2012
Given the unchanged global financial situation and the Q1 performance which was in line with expectations, Danfoss maintains its overall expectations for 2012:

  • 2012 net sales are expected to remain at the same level as 2011.
  • 2012 operating profit is expected to remain at the same level as 2011.

The expectations do not include the impact of divestitures, discontinued operations or acquisitions.

Please direct any queries about this announcement to:
Niels B. Christiansen, President and CEO, tel.: +45 74 88 75 50
Per Have, Chief Financial Officer, tel.: +45 74 88 40 01
Markela Dedopoulos, Vice President Corporate Communications, tel.: +45 23 37 65 90

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