Danfoss group release financial results
DENMARK – The Danfoss Group have today published their financial results for the second quarter of 2016. The results show that, after ending the first quarter on a positive note, the group recorded an even better Q2, delivering a strong half-year with an increasing top-line and what the group are calling “significantly improved earnings”. As a consequence of today’s figures, the group’s total net sales for the first half-year increased to DKK 19.4bn (£2.23 billion) compared to DKK 19.2bn (£2.20 billion) over the same period last year, which corresponds to 4% growth in local currency. The group also revealed that their operating profit (EBIT) had improved by 18%, ending on DKK 2.2bn ( equivalent to 0.25 billion pounds) .
Commenting on the financial results, Danfoss president & CEO Niels B. Christiansen expressed his satisfaction, saying “We are very pleased with our first half-year, where growth drove our improved earnings. We are beginning to see the impact from our targeted growth initiatives, investments in innovation and our continued focus on our competitiveness reflecting a positive development in our market share. In combination, this makes us capable of investing further in our growth initiatives and our digital transformation, in particular.”
One of the key planks for the group’s improved results was progress in Danfoss’ largest markets, including Europe and China, where the need for energy efficiency and more climate-friendly solutions were deemed to have driven the sales increase. All four of the Danfoss group’s business segments successfully posted increased net sales in local currency for the first half of the year, with Danfoss Cooling and Danfoss Heating, in particular, both increasing sales and delivering significantly improved earnings.
Discussing the reasons for the group’s success, Niels B. Christiansen explained that “Our businesses hold really strong positions in the market, and we see positive trends in some of our biggest markets. Smart and efficient energy systems are increasingly being placed high on the agenda across the globe, and this has a positive effect on the demand for the innovative technologies we deliver.”
The group also disclosed that they would stick with their financial predictions for the year and declared that they expected to maintain or expand their market share and maintain their EBIT margin at the group’s 2015 level.