Solid momentum in North America and India drives improved net sales, and earnings and cash flow continue to be very strong.
Throughout the first nine months of 2014, Danfoss has delivered strong results. For the period, net sales were DKK 25,704m and 4% above the same period last year, measured in local currency. The Group’s earnings before other income and expenses were 17% above last year, and the cash flow continued to be strong.
”Our sustained focus on improving quality, reliability and productivity is driving these continuous good financial results in a global low growth scenario. This puts Danfoss in a favorable position, where we can focus on new innovations and initiatives to accelerate growth of the company,” says President & CEO Niels B. Christiansen.
The need for infrastructure, food supply, energy efficiency and climate-friendly solutions are drivers of the continued high demand for Danfoss technologies. In the first nine months, the two business segments Danfoss Climate & Energy and Danfoss Power Solutions had sales growth in local currency of 3% and 7%, respectively.
From a regional point of view, Danfoss continues the solid momentum in North America with sales growing 9%. In Europe, markets remained soft and growth rates were modest. Despite a fairly strong start to the year, China had sales in the first nine months at the level of last year, which confirms the expected trend of slightly decreasing growth in the BRIC countries. India, however, continued to deliver strong sales growth of 11%.
“In order to accelerate growth further, we are investing in geographical growth pockets around the world. India is one of these, and within the next few weeks we will open a new campus with R&D and production facilities in Chennai. This new campus will strengthen our presence and support the growth ambitions in the region,” says Niels B. Christiansen.
From a technological point of view, the Danfoss Turbocor compressor, a relatively new, innovative variable speed oil-free compressor technology, was a remarkable contributor to sales growth. In the first nine months, the innovative compressor had double digit sales growth.
“We are now seeing the potential of this Danfoss innovation, of which we gained full ownership in 2012. Due to its outstanding energy efficiency performance, the Turbocor technology has the potential to revolutionize the market. This is a great example of how we use our strong financial position to invest in technologies, which enable the world of tomorrow to do more with less,” says Niels B. Christiansen.
Highlights of 3rd quarter 2014 year-to-date:
- Net sales were DKK 25,704m against DKK 25,528m in the year-earlier period, equal to 4% growth in local currency.
- The operating profit (EBIT before other operating income/expenses) was DKK 3,432m against DKK 2,938m in the year-earlier period, corresponding to an improvement of 17%.
- Cash flow before M&A was DKK 2,090m against the record level of DKK 2,121m last year.
Outlook for 2014
The Group upgrades its expectations for the year:
Net sales are expected to show modest growth in local currencies in 2014.
The operating profit in 2014 is expected to grow at least in line with net sales.
For more information:
Danfoss Media Relations, tel.: +45 7020 4488