First half-year 2018 announcement

Danfoss continues strong growth momentum

Progress across Danfoss is driving strong earnings, while continuing the high investment levels

Danfoss continued its progress in the first half of 2018. Sales grew by EUR 106m to EUR 3,041m – a growth of 9% in local currency. While continuing the high investment levels, the earnings (EBIT) improved by 21% to EUR 370m and the net profit improved by 27% to EUR 253m. The positive development in earnings was driven by the higher top line and the gain from the divestment of the heat pump business Thermia.

"We have maintained strong momentum across our business segments. Our solutions are relevant to several strong global megatrends, such as urbanization and the fight against climate change, which are driving a growing demand for energy efficiency and smarter digital solutions. The transition of the global energy supply to greener energy is driving another trend towards electrification. Here, too, we can see that our customers are looking to Danfoss as a technology partner who matches their future needs for solutions for hybrid or fully electric cars, ships and off-highway vehicles," says Kim Fausing, President and CEO.

The half-year results were generated across Danfoss' businesses and markets. In the first six months of the year, China, in particular, stood out with significant growth driven by increasing demand for climate-friendly and energy-efficient solutions, such as large heat pumps and the expansion of district heating systems, driving a growing demand for Danfoss technologies. At the same time, Danfoss is experiencing a continued strong demand on the two largest markets, North America and Europe.

"We have had a strong first half-year. We are reaping the fruits of the recent years' targeted work with growth initiatives, where we are investing in innovation and focusing on market development in countries with high potential, such as China. At the same time, we are using this momentum to invest in new technology and the continued digital transformation of Danfoss – of our solutions, our servicing of customers and of the way we work," says Kim Fausing.

Key figures from the first half-year 2018:

• Sales increased EUR 106m to EUR 3,041m (first half 2017: EUR 2,935m), corresponding to 9% growth in local currency.
• Operating profit (EBIT) improved by EUR 64m to EUR 370m (first half 2017: EUR 306m). The EBIT margin was 12.2% (first half 2017: 10.4%).
• Net profit improved by EUR 53m to EUR 253m (first half 2017: EUR 200m).

Outlook for 2018 maintained

We expect to maintain or expand our market share, while maintaining the profitability measured as margin at 2017 level, following significant investments in digitalization.

For more information:
Danfoss Media Relations
Tlf.: +45 70 20 44 88