Year in review
Annual Report 2020
Danfoss is more relevant than ever. We provide sustainable solutions that make a real impact. The global megatrends create opportunities for Danfoss, and we are well on the way to become the globally leading technology partner to deliver the innovation the world is asking for.
Watch the video with Danfoss President & CEO Kim Fausing.
Danfoss came out of 2020 with strong results and expects growth in 2021
Danfoss came out of 2020 strong results despite COVID-19. The high investments in innovation, digitalization and electrification continued. Towards the end of the year, the order books grew significantly. At the same time, Danfoss is well prepared to take in Eaton Hydraulics and ready for the global growth that is driven by the focus on green transition, infrastructure, and urbanization.
Danfoss saw the most significant impact on sales in the second quarter of 2020, followed by a gradual improvement in the second half. China especially gained traction rapidly and delivered high growth rates. In the fourth quarter, Danfoss was back to pre-COVID-19 sales levels in most markets.
All in all, sales ended at EUR 5,828m, which was 6% lower than the previous year measured in local currency. Operating profit (EBITA) reached EUR 723m, which was 6% below 2019, but with a strong EBITA margin of 12.4% versus 12.3%. Danfoss delivered a record high cash flow performance.
Supplementary reports 2020:
“Sustainability is important for our people, our planet and our financial performance. In Danfoss, we play a significant role in promoting energy efficiency and enabling electrification in the transition towards a world with lower carbon emissions. Our products and solutions help the world to grow in a sustainable way, and we take our own medicine optimizing our own production and services. It is not just good business – its common sense,” says Kim Fausing, President and CEO.