Danfoss sees strong start to 2014

DENMARK: Strong demand for its refrigeration and air conditioning components has helped Danfoss achieve increased sales and earnings in the first quarter of this year.  

Net sales in the first quarter were up 3% to DKK8,303m (€1,112m) against DKK8,063m (€1,080m) in the first quarter of 2013. When stated in local currencies, growth was 7%. Likewise, the Group’s operating profit before other operating income and expenses of DKK996m was significantly higher than the DKK679m recorded in the relatively weak first quarter of 2013.

“The start of this year is a continuation of the strong momentum that we built during the second half of 2013,” commented president and ceo Niels B Christiansen. “At the same time, the value of our employees’ targeted efforts to improve productivity is becoming more and more evident, as is the way that the overall activities and the results are strengthening Danfoss.”

The progress was driven by a strong demand for Danfoss’ energy-efficient solutions. In particular, its power electronics business and its refrigeration and airconditioning division both showing increasing net sales and profit.

Europe and the US has delivered gradually increasing growth rates over the past few quarters. In the year’s first quarter, both markets grew by 7% in local currencies. Growth was also seen in China, where Danfoss experienced a 10% in local currency for the quarter.

“We particularly note that it seems markets are looking up in Europe and the US, and that the growth in general is broadly rooted across the business areas and the markets. This gives us reason to be a bit more optimistic in relation to the remainder of the year, but we are still operating on a global market characterised by low growth and low visibility,” said Niels B Christiansen.