In the third quarter, Danfoss acquired two companies, Sondex Holding A/S and White Drive Products Inc., totaling annual sales of approx. DKK 1.6bn, and as part of the Group’s digitalization strategy, a new digital development hub has been set up in Berlin.
“Our committed efforts to lift growth through, among other things, investments in innovation and growth markets, have resulted in increased market share. At the same time, our consistently strong cash flow and strong earnings capacity pave the way for a further strengthening of our core businesses through acquisitions and investments in new digital initiatives,” says President & CEO Niels B. Christiansen.
Sales in Europe, Danfoss’ largest market, are improving. The development is also positive in China and in some parts of North America, and India maintains the double-digit growth rates. Danfoss Cooling, in particular, had solid growth in both sales and earnings. But, also Danfoss Power Solutions and Danfoss Heating delivered improved sales and earnings, whereas Danfoss Drives was impacted by the lower activity levels in several global industries.
“We maintain the positive trend, and despite a global economy characterized by low prices on commodities and generally low activity levels in a number of the major global industries, several factors are triggering a positive development. Looking ahead, with the COP21 climate agreement entering into force, we see a major potential for us, as energy efficiency is key for each country to reach the planned reduction targets. Accordingly, we expect that the demand for several of our energy-efficient technologies and solutions will rise in the medium and long term,” says Niels B. Christiansen.