DENMARK: Danfoss saw sales drop 6% in 2020 to €5,828m, with net profit down 13% compared to 2019.
These are considered strong results in the light of the impact of Covid-19, and Danfoss sees reason for optimism with sales back to pre-Covid levels in the fourth quarter.
“We delivered a significantly better financial performance in 2020 than we expected at the turn of the first half. Due to the uncertainty we experienced, we adjusted our cost to the lower activity level,” said Danfoss president and CEO Kim Fausing.
“We kept our factories going globally, we serviced our customers, and strengthened our digital presence. Our teams around the globe have handled this difficult situation in a fantastic way. With their extraordinary efforts, we have been able to safeguard our strategic initiatives.”
Danfoss experienced the most significant impact on sales in the second quarter of 2020, followed by a gradual improvement in the second half. China especially gained traction rapidly and delivered high growth rates. In the fourth quarter, Danfoss was back to pre-Covid-19 sales levels in most markets.
Operating profit (EBITA) reached €723m, which was 6% below 2019. This was tempered by a strong EBITA margin of 12.4% (2019: 12.3%). Danfoss delivered a record high cash flow performance.
“Despite the global uncertainty and the impact this had on demand, we continue to deliver strong results,” said Kim Fausing.
“The Covid-19 pandemic is far from over, but we are ready for the global growth driven by the focus on green transition, electrification, infrastructure, and urbanisation,” he added.