Danfoss Reports Sales of EUR 4.9 Billion

Danfoss Achieved EUR 4.9 Billion in Sales Danfoss, which operates in air conditioning, motor control systems and power solutions, announced its financial results for the first half of 2022. The company increased sales by 50%, including the acquisition of Eaton Hydraulics in 2021, and closed the first half of the year with sales of EUR 4.9 billion. Organic growth was realized at 13%. The company's EBITDA (EBITA) outputs rose by 27% to EUR 570 million. With a strong first half and the Semikron Danfoss partnership, the sales target for the end of 2022 was raised to the range of EUR 9.5-10.2 billion. Danfoss completed the first half of the year with a strong financial performance in line with its Core & Clear 2025 strategies. In the first six months, the company grew by EUR 1.6 billion, reaching sales revenues of EUR 4.9 billion. The company generated an additional EUR 1.1 billion in sales from the Eaton Hydraulics business line added to its portfolio last year, while organic growth was realized at 13%. Financial growth encompassed major markets in North America, Europe and Asia-Pacific, as well as air conditioning solutions, motor control systems and power solutions business lines. Danfoss Power Solutions segment stood out with significant growth figures in the mobile and hydraulic power systems and electrification business lines in which it operates. Additionally, the growing need for heating and cooling solutions providing high energy efficiency drove interest in Danfoss Climate Solutions and Danfoss Drives segments. Compared with the first half of the previous year, the company continued its substantial investment in innovation (R&D) with an increase of 38%. At the same time, it achieved a 27% increase in operating profit with EBITDA (EBITA) of EUR 570 million.

Kim Fausing, President and CEO of Danfoss, made the following statement:

"Danfoss is transforming at full speed. Despite the challenging times we are in, we are very pleased with the extraordinary effort shown by all our team members working globally to achieve our targets. With our financial results for the first six months, we are supporting our long-term success with bold investments. We are building a strong foundation to implement our Core & Clear 2025 strategy. In this challenging business environment, we successfully continued the integration of the hydraulics sector while maintaining our growth momentum. We completed our Semikron Danfoss partnership process. The world is on the threshold of a power electronics revolution and we are taking important steps to be in a leading position. For this reason, we have raised our sales expectations for year-end 2022 based on our first half results." "We have taken a bold step to place sustainability at the center of our Core & Clear 2025 strategy. Our new Environmental, Social and Governance (ESG) targets are very clear. At the same time, our climate targets have been approved by the Science Based Targets initiative. Our motivation is to be committed to energy efficiency, machine productivity, low emissions and decarbonization through electrification, and to be a leading technology partner. Danfoss has never been in a better position to realize its purpose of designing a better future and tomorrow."

Mert Kalafatoğlu, General Manager of Danfoss Turkey and DAF Energy, made the following remarks on the subject:

"In parallel with Danfoss global results, as Danfoss Turkey, we completed the first half of 2022 with double-digit growth rates in all segments in which we operate. Following the pandemic period, we continued the momentum we achieved in 2021 with greater strength in the first half of 2022. In a period when raw material, energy and logistics costs have increased, and inflation figures and prices continue to rise, I thank all my colleagues, particularly our business partners and customers, who contributed to this success."