Danfoss reports sales down 9%

DENMARK: Danfoss has reported sales down 9% to €5,012m and operating profit down 22% to €533m in the first half of this year. 

Danfoss Climate Solutions was the best performing of the Danish manufacturer’s three business segments, with sales down just 3% at €1,517m. The most important growth drivers for Climate Solutions were identified as decarbonisation in industrial sectors and digitalisation/datacentres. The “soft” European construction market, particularly in central Europe, had an impact, especially on the company’s heating business, such as residential heat pumps and the district heating market. 

“We have successfully navigated various economic cycles before, and we are doing so again. While the current situation may be challenging, it is important to emphasise that we will continue pursuing our long-term growth strategy,” commented president and CEO Kim Fausing.

Group R&D investments amounted to €247m, on a par with last year and corresponding to 4.9% of sales.