The Group results in the first half-year were in line with expectations. Net sales were up 14% and earnings were at level with the same period last year.
The Danfoss Group had a good first half-year of 2015 with net sales at DKK 19,239m against DKK 16,920m in the same period last year. The improvement corresponds to 14% growth including the additional sales coming from the Finnish drives manufacturer Vacon, which Danfoss acquired in the latter part of 2014. In local currency growth was 6%. The free cash flow before M&A was slightly above the year-earlier period, while the Group’s earnings (EBIT excluding other operating income/expenses) were at level with last year.
“All in all, it has been a good half-year for us. We continue to deliver strong results, and by having a strong focus on growth opportunities we have to a large extent been able to counterbalance softness in some of our markets. Consequently, we have upgraded our full-year expectation for net sales growth to 9-14%,” says President & CEO Niels B. Christiansen.
Also from a business segment point of view, the first six months have been characterized by varying market conditions. Danfoss Drives has following the acquisition of Vacon continued the strong momentum, and Danfoss Cooling has also maintained good performance. The economic downturn in Russia and following difficult market conditions has impacted Danfoss Heating negatively. In Danfoss Power Solutions, results have been marked by difficult market conditions in especially the agricultural market.
“Conditions remain mixed across markets and regions, but overall we have been successful in navigating in a continued global low growth environment,” says Niels B. Christiansen.
Highlights of first half-year 2015:
- Net sales were DKK 19,239m against DKK 16,920m in the year-earlier period, equal to 14% growth and 6% in local currency.
- The operating profit (EBIT excluding other operating income/expenses) was DKK 2,000m against DKK 2,039m in the year-earlier period.
- Free cash flow before M&A was DKK 686m against DKK 660m last year, equal to an improvement of 4%.
Outlook for 2015
The net sales forecast, including full-year impact of the acquisition of Vacon, is raised, and net sales are now expected to grow by 9-14% (previously 5-10%).
The underlying profitability is expected to slightly improve. However, integration cost in the first year of Vacon ownership is expected to keep operating profit (EBIT) excluding other income and expenses on par with 2014.
For more information:
Danfoss Media Relations, tel.: +45 7020 4488
Engineering the world of Tomorrow
Danfoss engineers advanced technologies that enable us to build a better, smarter and more efficient tomorrow. In the world’s growing cities, we ensure the supply of fresh food and optimal comfort in our homes and offices, while meeting the need for energy efficient infrastructure, connected systems and integrated renewable energy.
Our solutions are used in areas such as refrigeration, air conditioning, heating, motor control and mobile machinery.
Our innovative engineering dates back to 1933 and today Danfoss holds market-leading positions, employing more than 26,000 and serving customers in more than 100 countries. We are privately held by the founding family.