The underlying growth in local currency was 6% (2015: 5%), leading to a DKK 1,216m increase in net sales to DKK 39,247m (2015: DKK 38,031m). All business segments contributed to obtaining local currency growth.
Operating profit (EBIT) improved 4% to DKK 4,262m (2015: DKK 4,097m), leading to an EBIT margin of 10.9% (2015: 10.8%). Profit before tax improved 5% to DKK 3,938m (2015: DKK 3,741m), leading to net profit of DKK 2,935m (2015: DKK 2,597m), up 13% on last year.
The cash flow before mergers and acquisitions was maintained at a high level of DKK 3,416m (2015: DKK 3,397m), driven by a strong cash generation across the Group. Free cash flow ended at DKK 1,485m (2015: DKK 3,048m), mainly affected by the acquisitions.
At December 31, 2016, the net interest-bearing debt stood at DKK 9,548m (2015: DKK 9,640m), leading to a net interest-bearing debt to EBITDA ratio of 1.6 (2015: 1.6).
The research and development spend grew 2% to DKK 1,645m (2015: DKK 1,607m), corresponding to 4.2% (2015: 4.2%) of sales. The innovation activities were concentrated around digitalization of the portfolio and on developing energy-efficient and value-added solutions in the core business segments.
The Danfoss Group had 25,292 (2015: 23,420) employees at year-end. The increase was mainly due to the acquisitions, where Sondex Holding A/S contributed with around 1,100 employees and Propulsys, Inc., the parent company of White Drive Products Group, 600 employees worldwide.
Danfoss at a glance (iPaper)
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