The globally increasing focus on the potential in energy efficiency and need for climate-friendly solutions were strong drivers of the demand for Danfoss technologies and solutions in 2015.
“2015 was a good year for Danfoss. Our focal point has been to further strengthen our global position including acquisitions of new innovative technologies and investing in new test and demonstration facilities. And, our increased investments in innovation paid off with several new products utilizing digital technology being successfully introduced to the markets and very well received by our customers,” says President & CEO Niels B. Christiansen.
Despite challenging market conditions for some parts of the business, Danfoss maintained strong financial performance. For the group, net sales ended at DKK 38.0bn (EUR 5.1bn) against DKK 34.4bn (EUR 4.6bn) in 2014. The improvement corresponds to 11% growth. In local currency, growth was 5%. EBIT was improved to DKK 4.1bn (EUR 549m), which is equal to an increase of 4%. Net profit was at DKK 2.6bn (EUR 348m) record-high and 13% above last year. The free cash flow before M&A matched the high 2014-level.
The group’s four business segments experienced mixed market conditions. Danfoss Cooling and Danfoss Drives both delivered performance above last year. On the other hand, Danfoss Power Solutions were impacted by a downturn in the global mobile hydraulics market, while Danfoss Heating had a challenging year mainly due to the economic downturn in Russia.
From a regional point of view, as expected, the business environment in Russia remained challenging, and the Chinese market continued to slow down. Conversely, countries like Mexico, India and Turkey continued with strong growth, and also markets in North America and Europe showed a positive trend in 2015.
2015 financial highlights
- Net sales grew to the record level of DKK 38.0bn (EUR 5.1bn) against DKK 34.4bn (EUR 4.6bn) in 2014, corresponding to 11% growth. In local currency growth was 5%.
- The operating profit (EBIT) was improved to DKK 4.1bn (EUR 549m) against DKK 3.9bn (EUR 526m) in 2014, equal to an increase of 4%.
- Net profit was DKK 2.6bn (EUR 348m) against DKK 2.3bn (EUR 307m), an improvement of 13%.
- Cash flow before M&A was DKK 3.4bn (EUR 456m) against DKK 3.4bn (EUR 455m) in 2014.
The company expects to maintain or expand its market share while maintaining its EBIT margin at level with 2015.