DENMARK: Danfoss has reported a 6% rise in first quarter group sales to €1,563m.
The Danfoss Cooling segment – accounting for 25% of sales – is said to have delivered solid growth and a profitability slightly below the first three months last year.
Significant growth drivers were Latin America, North America and Western Europe. Sales were below last year in the Asia-Pacific and Africa-Middle East regions, which Danfoss attributes to continuing geopolitical uncertainty and customers postponing refurbishment of their refrigerant equipment.
“We have had a good start to the year. As expected, the growth rates in some of the industries we serve have lowered since the fourth quarter last year,” commented Danfoss president and CEO Kim Fausing.
“Our energy-efficient and innovative solutions have never been more relevant. Therefore, we continue to strengthen our core businesses and increase our investments in innovation. Furthermore, we continue our high investments in creating a strong platform within electrification and digitalisation. This is our way of getting ahead and fuel future growth,” he added.
In the first quarter, Danfoss increased its investments in innovation by 11% to €68m, equal to 4.4% of sales.