Danfoss A/S: Third quarterly report 2007

• Net sales increased by 18% to 16.6 billion DKK from 14.1billion DKK in the same period last year. Growth was 14%, when converted at last year’s level of exchange rates and adjusted for acquisitions and divestments, compared to 12% in the same period the year before.
• Operating profit excl. other income and expenses increased by 15% to 1,273 million DKK from 1,103 million DKK, while the operating profit (EBIT) increased to 1,235 million DKK from 1,221 million DKK in the third quarter of 2006.
• Profit before tax was 1,142 million DKK, which is level with the same period last year. The result has been negatively affected by financial items.
• The number of employees increased to 21,826 from 20,628 at the same time in 2006.

Expectations for 2007: 

• Danfoss retains its expectations for net sales, as announced in connection with the publication of the 2006 accounts. The continuing high price of raw materials, together with restructuring costs, mean, however, that expectations for the profit are at the low end of the range.
• Consequently, 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 still expected to be between 1.6 and 1.8 billion DKK, of which acquired companies are expected to contribute with 50 million DKK. The year's result is expected to be at the low end of the range. The full impact of the results of the companies acquired in 2006 is not expected to show until the 2008 profits. The EBIT margin is expected to be between 7.5% and 8%.
• Any impact of future acquisitions and divestments has not been included in the expectations.

Please address any enquiries regarding this announcement to: Chief of Staff Ole M. Daugbjerg (+45 7488 2008).