Danfoss A/S: Half-year report 2010

• Net sales were 15.8bn DKK, which equals growth of 25%. When adjusted for acquisitions, divestments and foreign currency translations, growth was 23%, compared with a decrease of -23% the year before.
• The profit before other income and expenses was 1,219m DKK, compared with a loss of 660m DKK in 2009.
• The operating profit (EBIT) was 1,166m DKK, compared with a loss of 1,250m DKK the year before.
• The profit before tax was 1,074m DKK, compared with -1,457m DKK the year before.
• Despite extensive growth and in contrast to Danfoss’ historical performance, the free cash flow was 116m DKK, compared with -126m DKK in 2009.

Expectations for 2010:
As a result of the developments in the first half-year, Danfoss maintains expectations for the entire accounting year while making an upward adjustment of earnings.

• Therefore, net sales are expected to be between 27bn and 28bn DKK. However, we estimate that a continued positive development at Sauer-Danfoss and Danfoss Climate & Energy will mean that Danfoss will exceed these expectations. The next months’ peak season at Danfoss Heating Solutions and Danfoss District Energy will give conclusive hints as to whether these sectors have finally recovered from the impact of the financial crisis.
• The EBIT is expected to be between 1.4bn and 1.8bn DKK (previously 1.1-1.4bn DKK).
  

These expectations do not include the impact of divestments or acquisitions of companies/activities.

Please address any enquiries to:
Niels B. Christiansen, President and CEO, tel.: +45 74 88 75 50
Per Have, Chief Financial Officer, tel.: +45 74 88 40 01
Ole M. Daugbjerg, Chief Reputation Officer, : +45 74 88 20 08