365telugu.com online news,CHENNAI,19th August, 2021:In the first half of 2021, Danfoss sales grew to EUR 3.3 billion-a growth of 18% in local currency. Danfoss saw extensive growth in all regions, despite someparts of the world are still affected by the COVID-19 pandemic. The company continued significant investments in innovation (R&D), amounting to 4.7% of sales. At the same time, Danfoss delivered a 45% increase inoperating profits with EBITA of EUR 449 million – an operating profit that even outperformed the strong level of the first half of 2019, pre-COVID. Net profit was up 74%, amounting to EUR 286 million.
“I am very proud to present the best half-year results ever. We reported record level topline, profitability and cash flow. At a time when the effects of climate change are increasing, as per the recently published IPCC climate change report, Danfoss is taking the lead in the transformation towards a carbon neutral future. Our unmatched innovation and R&D capabilities and our ready-to-use energy-efficient, low emission and electrification solutions are enabling the green transition,” said Kim Fausing, President & CEO – Danfoss.
“With these strong results, we are ready for the second half of the year. It’s exciting to close the Eaton Hydraulics acquisition and welcome our 10,000 new colleagues. We have just begun our journey together – two talented and highly competent teams joining forces to become an even stronger technology partner for our customers and distributors,” said Kim Fausing.
Danfoss in India region has recorded an extremely strong sales growth in H1 2021, driven by increasing demand for its products and service. Expanding sales footprint, increasing channels, robust recovery in Tier II & III cities, coupled with innovative applications and localization initiatives, is driving this momentum. The demand for energy efficiency, energy storage and electrification portfolio, is leading our sales.
Danfoss India is quite bullish on crossing INR 2,000 crores turnover by the end of the year with capex cycle pickup in core Industry and PLI schemes launched by the Govt of India. This growth is supported by its strong employee base across the country, which has crossed 2000+ this year.
“India is an important market with significant growth potential for Danfoss. We continue to invest in the country and cater to the evolving needs of our customers. With good results witnessed across all our segments, we are quite confident about ending the year on a high note. Our aim is to establish India as one of the top 5 markets for Danfoss globally, in the coming years”, said RavichandranPurushothaman, President – Danfoss India.
“Like other companies in the world, we have seen challenges in our supply chain due to holdups in logistics, shortages of electronic components and price increases on freight and raw materials. Across our businesses, we continue to do everything we can to serve our customers and ensure a minimum of impact. At the same time, I want to thank all Danfoss colleagues for the outstanding teamwork and resilience they demonstrate in navigating the challenges of the pandemic. I am extremely proud of how we continue to keep health and safety top of mind to protect our people, communitiesand customers while also securing our growth strategy,” Kim Fausingconcluded.
Key figures for firsthalf of 2021
· Sales increased 14% to EUR 3,265 million (H1 2020: 2,864m), corresponding to 18% growth in local currency.
· Operating profit before acquisition-related amortization (EBITA) increased by 45% to EUR 449 million (H1 2020: 309m). The EBITA margin increased to 13.8% (H1 2020: 10.8%).
· Net profit was EUR 286 million (H1 2020: 164m),74% better than in the first half last year.
· Cash flow from operating activities before M&A increased to EUR 63 million (H1 2020: EUR 33m).
· Investments in innovation (R&D) reached a high level of EUR 154 million (H12020: 130m), corresponding to 4.7% of sales (H1 2020: 4.6%).
Outlook 2021
Danfoss, excluding Eaton Hydraulics, expects to continue to expand or maintain our market share, while maintaining or improving profitability measured as margin versus the 2020 level, following continued investments in the development of new products and solutions.
Taking into account the anticipated additional Eaton Hydraulics sales following closing of the acquisition, Danfoss expects a significant increase in Group sales for the year 2021. We expect profitability will be impacted by purchase-price allocation, depreciation and amortization,and integration costs related to merging with Eaton Hydraulics. The acquisition was financed with debt and will result in an increase in financial expenses.
Danfoss is committed to decarbonizing its global operations by 2030.
Relevant links:
https://www.danfoss.com/en/about-danfoss/company/financials/
Danfoss is engineering technologies that enable the world of tomorrow to be better, smarter, and more effective. In growing cities, we ensure the supply of fresh food and optimal comfort in homes and offices, while meeting the need for energy-efficient infrastructure, connected systems and integration of renewable energy. Our solutions are used, for example, for cooling, air conditioning, heating, controlling electric motors and mobile equipment. Our innovative engineering can be tracked back to 1933, and today Danfoss is a global leader with 37,000 employees and sales in more than 100 countries. We are privately owned by the founder’s family.
Read more about us at www.danfoss.com.