Danfoss continued to make significant investments in M&A, digital transformation, innovation and expanding capacity and regional footprint to offer customers and partners best-in-class solutions. The aim is to be the preferred technology partner and drive decarbonization globally together with customers through energy efficiency, machine productivity, lower emissions, and electrification.
Sales grew 13% compared to the first half last year, and organic growth was 8%, with EBITA margin reaching 12.4%. After continued high levels of strategic investments in innovation and new technology, EBITA increased 20% to EUR 686m. Earnings were driven by the higher topline, M&A synergies, and unwinding of the disruptions in global supply chains.
“I would like to thank the entire Danfoss team for delivering robust half-year results. In particular, I would like to highlight our continued strong growth momentum in the Americas and India as well as in our Power Electronics and Drives segment,” said Kim Fausing, President & CEO of Danfoss.
On March 1, Danfoss closed the acquisition of the German compressor manufacturer BOCK GmbH, which is a global technology leader in semi-hermetic compressors for natural refrigerants. With the rising demand for climate-friendly technologies in commercial refrigeration systems, Danfoss has invested in this area to broaden its portfolio of compressors. Integration of Eaton’s hydraulics business and Semikron Danfoss are also progressing well.
Danfoss also made another step towards the target of carbon neutrality in its own global operations (scope 1 & 2) by 2030 by signing a power purchase agreement for solar power in the US, starting in 2025. Electricity will be sourced from a new six square-mile farm in Texas, USA. Groundbreaking is scheduled for November, with the farm becoming fully operational by the spring of 2025.
Danfoss has a continued ambition to expand or maintain market share. Sales are expected to be in the range of EUR 10.4-11.9bn for the full year. The EBITA margin is expected to be in the range of 11.5-13.0%, following the continued integration of already acquired businesses as well as investments in the development of new products and solutions. The expected growth and profitability performance is dependent on the development of global supply chain disruptions, the war in Ukraine, inflation, and the pandemic, as well as the general growth rates in the world economy.
For further information please contact:Amanda Chick, Global PR LeadPh: +357 9514 5470 Email: amanda.chick@danfoss.com
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