Danfoss A/S: First quarterly report 2009
18 May 2009
”Danfoss has a strong belief that our operating profit is set to improve as we approach the end of the year; it is now possible to calculate the effects of the many initiatives that we have carried out to counter the global crisis. This does not change the fact that we, as expected, continue to be hit by the global recession and that the numerous restructuring activities and cost reductions will not be apparent until the second half-year and in 2010. Therefore, the first quarter generated a negative result, which is entirely in line with our expectations. We also expect a negative and weak second quarter, since we do not anticipate the overall market conditions to improve in the course of 2009. So the possibility remains for further initiatives to introduce additional restructurings, if the situation worsens. Net sales have reached a comparatively stable level, so the effect of the restructuring activities will mean that we will obtain improved profit in the second half-year. However, this will not compensate for the expected negative first half-year, which is why our expectations of a loss for 2009 is maintained.”
Niels B. Christiansen, President and CEO, Danfoss A/S
