Danfoss delivers strong growth in the first quarter
Danfoss had a strong start to 2017 with growth of 13% and increased investments in digitalization.
In the first three months of the year, Danfoss continued the progress and increased its net sales and earnings. Net sales grew DKK 1.3bn to reach DKK 10.7bn – a growth of 13%, corresponding to 11% local currency growth. The higher sales lifted earnings (EBIT) by 7% to reach DKK 1.0bn, while the net result was up 12 % to DKK 691m. The cash flow from operating activities increased 20% to DKK 528m.
“We maintain momentum and had a strong start to the year. We are gaining market shares and grow faster than the industry and the overall global economy. We see that our growth initiatives are working, and we have invested in new companies, innovation and the development of new digital solutions to the benefit of our customers. So, it is a strong combination of organic growth and the impact from acquisitions, which are driving growth," President & CEO Niels B. Christiansen says.
The progress of the Group is broadly based across its markets, including Danfoss’ two largest markets, Europe and North America; but, it is increasing sales in the BRIC countries, in particular, that have driven the increase in total net sales in the first three months of the year. India has, for a long time, delivered high double-digit growth rates, and as a result of considerably increasing demand for energy-efficient technologies, growth in China has increased and reached the same high level. At the same time, there are indications of improved market conditions in Brazil and Russia, which have suffered from an economic slowdown.
Key figures from first quarter 2017
- Net sales increased by 13% to reach DKK 10.7bn (Q1 2016: DKK 9.4bn), which corresponds to growth of 11% in local currency.
- The operating profit (EBIT) increased by 7% to reach DKK 1.0bn (Q1 2016: DKK 971m). The EBIT margin was 9.7% (Q1 2016: 10.3%).
Outlook 2017 confirmed
We expect to maintain or expand our market shares, while maintaining the profitability measured as margin at 2016 level following significant investments in digitalization.